Competition and innovation are preserved following major agricultural merger

News Release

Dow and DuPont must sell crop protection and specialised plastics businesses

June 27, 2017 – OTTAWA, ON – Competition Bureau

Competition and innovation concerns related to the proposed merger between E.I. du Pont de Nemours and Company (DuPont) and The Dow Chemical Company (Dow) were addressed today when the Competition Bureau reached an agreement with both companies.

The Bureau concluded that the transaction would likely result in a substantial lessening or prevention of competition and a decrease in innovation in the supply and development of certain crop protection products and specialised packaging plastics.  

To address the Bureau’s concerns, which are similar to those of foreign anti-trust authorities, DuPont agreed to sell a significant part of its global herbicides business and research and development (R&D) branch to FMC Corporation, a United States based chemical technologies company. The sale includes DuPont’s Canadian activities in cereal crops herbicides, as well as PrecisionPac, a popular herbicide dispensing system among Canadian farmers.

Additionally, Dow will sell its global business of certain specialised plastics products (ethylene acrylic acid copolymers and ionomers), typically used in specialised packaging applications for diverse products like food, beverages and pharmaceuticals, to SK Global Chemical Co. LTD (SK Global), a new entrant in these markets.

Following an investigation, the Bureau concluded that FMC Corporation and SK Global are acceptable buyers, as they are likely to compete effectively and support innovation in the sector in Canada. These sales by Dow and DuPont will preserve competition and innovation in the sale and development of key crop protection products and specialised packaging plastics.


“This transaction between two multi-national giants was of interest to Canadian farmers and those involved in this major economic sector. The agreement reached today ensures that consumers and businesses continue to benefit from a dynamic marketplace, which offers innovative solutions, increased choice and competitive prices.”

John Pecman,
Commissioner of Competition

Quick Facts

  • Dow and DuPont develop, manufacture, and sell agricultural products, such as seeds, herbicides, insecticides and fungicides and specialised materials, such as plastics used for packaging.

  • The Bureau collaborated with authorities in the US, in Europe and in Australia where the transaction was also subject to regulatory approval.

  • The European Commission, the U.S. Department of Justice and the Australian Competition & Consumer Commission approved the proposed transaction subject to similar conditions.

  • FMC Corporation is a United States based company specialised in chemical technologies and products for agricultural and pharmaceutical uses.

  • SK Global is a South Korean petrochemical company. Its parent company, SK Group, is a conglomerate with activities in various industries including telecommunications and energy.

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