The Law Office of Lynnette Ariathurai A Professional Corporation

Dupont and Dow companies one step closer to business merger

Antitrust regulators often must give approval before two or more high profile companies in California or elsewhere can merge their assets. Business merger is a common means of expansion in both domestic and international realms. The process, however, is seldom simple, and those involved typically face several challenges and obstacles along the way before they're able to bring their plans to fruition. Dow Chemical Co and Dupont are currently navigating their way through the merger system.

These two massive chemical product moguls recently received conditional approval from China regarding their proposed business merger. Regulators whose approvals have been sought, but not yet received include the United States, Canada and Brazil. Conditional approval often includes mandated divestment, as is the case with China's proposed approval of the Dow/Dupont deal.

China says it will approve Dupont's merger with Dow so long as Dupont divests its research and development department. The divestiture would also include assets related to various herbicides and pesticides used in rice products. Many interested parties are closely following the development of this situation, which has run into more than one regulatory roadblock along the way. 

Major structure changes are not uncommon in the evolution processes of large businesses. Obtaining the most favorable outcome in the swiftest and most economically feasible manner often lies in experienced business and commercial law support. A California attorney used to dealing with major corporations knows how to quickly access the most viable options to secure a satisfactory deal while protecting bottom line interests and preventing substantial delays for those facing business-related problems in this state.

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