Tribunal says it needs more information on maize seed market for Dow merger
The Competition Tribunal says the Competition Commission is required to consult further with interested parties in the proposed Dow and DuPont merger.
This comes after the commission recommended the approval earlier in July, albeit with conditions, of the proposed merger between DowDuPont, Dow Chemical Company, and EI DuPont de Nemours and Company (DuPont).
"The tribunal has requested further information from the commission in relation to the market for maize seed in SA, more specifically in relation to a licensing remedy that has been proposed by the merging parties in reaction to the commission’s concern of a significant loss of potential competition in the maize seed market as a result of the proposed transaction," the tribunal said on Thursday.
DowDuPont intends to buy Dow Chemical Company and DuPont. Dow’s activities in SA include the distribution of sunflower seeds, agrochemicals, material science products and food texturisers.
DowDuPont is controlled by Dow and DuPont, which are both listed on the New York stock exchange. DowDuPont is a newly incorporated holding company for the purposes of the proposed transaction.
It said the commission was required to consult a number of potential entrants/licensees in this market and to submit an additional report to the tribunal. The hearing of the matter will continue on August 4.
Earlier, the commission had recommended that the merger be approved with conditions relating to the divestiture of the entirety of the insecticide business.