WASHINGTON (CN) – Antitrust regulators asked a federal judge to sign off on the $130 billion merger of two of the world’s largest chemical companies, Dow Chemical and DuPont, certifying their compliance with measures that will ensure competition.
The 28-page final judgment, filed Sept. 28 with U.S. District Judge Amit Mehta in Washington, outlines an extensive series of divestments that the companies have to complete.
The company – now the world’s second largest chemical manufacturer overall – will split itself into three independent, publicly traded entities with emphasis on agriculture, materials science and specialty products respectively.
DuPont has agreed to divest its lease to a facility in Calgary, Canada, as well as assets connected to its Manati, Puerto Rico facility. Dow has been ordered to divest from its Freeport, Texas, facility, which is tasked with producing acid copolymers and ionomers, the compounds that make up pesticides.
Divestment of data related to DuPont’s formula for its Finesse brand products, other broadleaf pesticides and the compound rynaxpyr, which fends off chewing pests, are also part of the deal.
The Justice Department put the divestments in motion back in June with civil antitrust complaint joined by the states of Iowa, Mississippi and Montana.
It noted in a motion accompanying proposed final judgment that 60-day comment period required by the Antitrust Procedures and Penalties Act ended on Aug. 26 with no public comments.
As such, the government filed a certificate of compliance that states all APPA requirements have been certified.
The companies are now trading under DWDP on the New York Stock Exchange. Andrew Liveris, executive chairman for DowDuPont said consumers will see real gains from the merger and its new branches.
“The true value of this merger lies in the intended creation of three industry powerhouses that will define their markets,” Liveris said in a statement shortly after the merger was made official on Sept. 1.