Growers to Study Dow-DuPont Merger Impact

DuPont and Dow Chemical on Friday announced their intentions to merge into a chemical giant that would be valued at around $130 billion. The deal will have to pass muster with shareholders and government regulators.  The companies hope to close a deal before the end of next year.
The combined entity probably won’t last long. Company executives reportedly want to break the merger results into three specific functions – agriculture, specialty products and material sciences.
There were reports last month that DuPont was talking about a potential deal with Syngenta, while exploring another deal with Dow.
The ball got rolling on merger talks last spring when Monsanto unsuccessfully tried to buy Syngenta. Sources have indicated that Syngenta has at least one other potential suitor – a state-owned chemical company in China.
Chip Bowling, Maryland farmer and president of the National Corn Growers Association, issued the following statement in response to today’s announcement of a merger agreement between Dow and DuPont.
“The National Corn Growers Association is committed to protecting the best interests of our members and our nation’s corn farmers. With respect to the proposed merger, we anticipate that we will have an opportunity to submit comments regarding the effect this merger may have on agricultural research, innovation, grain marketing, and the competitive pricing of farm inputs. We will do all we can to protect farmer interests and preserve an open and competitive marketplace.”
If the deal clears its hurdles, the merger would combine two top suppliers of crop seeds and agricultural chemicals. The deal would be the biggest shakeup for the pesticide and seed industries in more than a decade.
The American Soybean Association is committed to examining the overall impacts of this merger on the agricultural industry and soybean farmers.
“As always, we welcome competition and innovation to the industry, while keeping the best interests of soybean growers at the forefront,” said ASA President Richard Wilkins, Greenwood, Del. “ASA looks forward to the opportunity to provide comments to the companies and U.S. regulatory authorities that must approve any merger, and will continue to study how this merger will affect soybean farmers.”