Attorneys General Getting Involved In Business Merger Probes
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Thursday, November 10, 2016.
Many California business owners are no doubt aware of the delays and impediments toward successful deals that lengthy government investigations can have on such situations. Certain ventures have been in the works that many believe could reshape the entire global farming industry. However, recent developments suggest that the deals of these companies may be at risk. Reportedly, several U.S. state attorneys general have become involved in the ongoing business merger probes.
One of the planned deals includes DuPont and Dow Chemical companies. Inside sources say the current antitrust probe regarding the projected business merger may be placing the entire deal at risk. The involvement of the state attorneys general means the planned agreement will be much more closely scrutinized. Supposedly, at least seven states have joined the probe, thus far.
With regard to another planned merger between two other big-AG companies, Bayer AG and Monsanto, a separate group of state attorneys general are expected to analyze the situation. Bayer AG plans to buy out Monsanto for $66 billion. There are concerns as to what effect such a merger may have on herbicide and pesticide prices in the industry.
Apparently, concerned parties think these prices will increase if the companies join forces. Spokespersons for the Dow and DuPont merger say they expect their deal to be approved when the probe is complete. They also said they are working diligently to demonstrate to state, federal and elected officials that the merger will have pro-competitive benefits. California business owners who have faced similar obstacles in the past have, many times, obtained successful outcomes by acting alongside experienced guidance in cooperation with government probes.
Source: stltoday.com, "States to join federal probes of Dow-DuPont, Bayer-Monsanto mergers", Diane Bartz, Nov. 8, 2016