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The European Commission said in a statement that the probe would focus on areas including crop protection and seeds.
On herbicides and insecticides, “the Commission has preliminary concerns that the proposed merger could reduce competition on these markets and that the reduction in the intensity of competition may have an impact on price, quality, choice and innovation”.
Its statement also mentioned “preliminary concerns that the merger may lead to a reduction of innovation in crop protection as a whole” through the “elimination of one of the few companies able to develop and launch new active ingredients”.
Brands
Dupont was the original producer of sulfanyl urea (SU) herbicides under brands such as Ally Cameo. Dow’s household name products in Ireland include Starene, a herbicide used to control docks, and Kerb. Both companies have developed fungicide lines in recent years.
On seeds, the Commission raised concerns that the merger could reduce competition for the development of so-called “gene editing” technologies and their availability to farmers.
European Competition Commissioner Margrethe Vestager said: “The livelihood of farmers depends on access to seeds and crop protection at competitive prices. We need to make sure that the proposed merger does not lead to higher prices or less innovation for these products.”
Dow and Dupont announced plans to merge last December, to create a new giant with a market capitalisation of $130bn.
They notified the European Commission on 22 June and Brussels has until 20 December to make a decision on the transaction’s compatibility with EU competition law.
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