{"id":20353,"date":"2017-04-02T00:00:13","date_gmt":"2017-04-02T04:00:13","guid":{"rendered":"http:\/\/beyondpesticides.org\/dailynewsblog\/?p=20353"},"modified":"2017-04-01T19:30:04","modified_gmt":"2017-04-01T23:30:04","slug":"dow-dupont-mega-merger-moving-forward-eu-raising-food-security-concerns","status":"publish","type":"post","link":"https:\/\/beyondpesticides.org\/dailynewsblog\/2017\/04\/dow-dupont-mega-merger-moving-forward-eu-raising-food-security-concerns\/","title":{"rendered":"Dow-Dupont Mega-Merger Moving Forward In the EU, Raising Food Security Concerns"},"content":{"rendered":"

(Beyond Pesticides<\/em>, April 3, 2017) The European Union (EU) has approved a $130 billion mega-merger between two agrochemical giants, Dow Chemical Company and\u00a0DuPont Company, heralding a new round of takeovers that environmental and farm groups fear will reduce farmer choice, seed diversity, and endanger the future of sustainable food production. The consent to the merger was given with the requirement that Dow sells off its pesticide business, which it plans to do as part of\u00a0a\u00a0$1.6 billion asset swap with the FMC Corporation, a pesticide manufacturer.<\/p>\n

\"\"The Dow Chemical-DuPont deal is one in a series of mergers in the agriculture-chemicals sector being considered in the EU and also the U.S. The Dow-DuPont merger is happening alongside proposed mergers of Bayer and Monsanto, and Syngenta and ChemChina. On March 27th<\/sup>, a letter signed by 200 organizations<\/a> across Europe was delivered to European Competition Commissioner Margrethe Vestage. The letter says that about 60% of commercial seed supplies will be centralized in the hands of just three multinational corporations if the mergers are all approved, and calls on EU regulators to step in and stop the deals and protect European farmers, and the European food system. The letter, organized by Friends of the Earth Europe, notes that the mergers of Dow and Dupont, and others, will\u201cexacerbate the problems caused by industrial farming \u2013with negative consequences for the public, farmers and farm workers, consumers, the environment, and food security.\u201d Additionally, reduced diversity of farming, and greater dominance of monoculture farming highly reliant on chemical inputs, including hazardous pesticides, brought on by consolidation and\u00a0concentration in the agricultural sector, will\u00a0further harm the environment, biodiversity, and human health \u2013including that of farmers and workers, the letter also states.<\/p>\n

As a condition for the deal, DuPont is\u00a0selling off large parts of its global pesticides business, including almost all of its global research and development group. But the U.S. agrichemical giant is the second biggest global seed supplier after Monsanto, and there is concern that just three mega-corporations could soon be left exercising a monopoly over the world\u2019s food and countryside, leading to higher food and production costs, since Dupont\u2019s assets will be bought by another agrochemical giant.<\/p>\n

In response to the latest European developments, the National Farmers Union (NFU) sent a letter<\/a>\u00a0to President Trump urging him to oppose the merger, citing a reduction in competition that will result in less innovation, higher prices, and less choice for family farmers. \u201cWe are currently in the midst of a third wave of consolidation, as the Dow-DuPont merger is happening alongside proposed mergers of Bayer and Monsanto and Syngenta and ChemChina. In 2007, the four largest agricultural biotechnology, seed, and chemical firms controlled approximately 72% of U.S. markets for corn and soybean seed,\u201d NFU writes. The group also notes that the merger will limit farmer choice, as there will be a reduction in seed diversity and availability that will impact farmers differently on a geographic basis.<\/p>\n

Seven U.S. state attorneys general (AG) have expressed concern and joined together to investigate federal antitrust concerns related to the merger of\u00a0Dow Chemical and DuPont. This investigation by the state AGs will increase scrutiny of these mega deals, as they were previously only being reviewed at the federal level by antitrust experts at the Department of Justice (DOJ). Since DOJ has yet to file a lawsuit opposing the mergers, groups and individuals who want to see the mergers blocked are thrilled to see the states get involved and urge DOJ to act.<\/p>\n

The discussion on these mergers began back in December 2015 when DuPont and Dow Chemical Companies announced that their boards of directors unanimously approved a merger of their companies<\/strong><\/a>\u00a0\u00a0through an all-stock deal, valuing the combined market capitalization at $130\u00a0billion. Then, in May of 2016, Bayer AG made its first bid for Monsanto<\/strong><\/a>, worth $42 billion, in an attempt to swallow the global seed and chemical producer and become the world\u2019s biggest farm chemical supplier. Though that initial bid was initially rejected, Bayer and Monsanto eventually reached\u00a0an agreement<\/strong><\/a>\u00a0in September 2016 to the tune of $66 billion. A third industry merger between China National Chemical Corp and Syngenta AG<\/strong><\/a>\u00a0is also in the works, having received the\u00a0go-ahead<\/strong><\/a>\u00a0from the Committee on Foreign Investment in the U.S. (CFIUS). However, the ChemChina-Syngenta merger is unlikely to be investigated by state AGs, as it does not involve a U.S. company.<\/p>\n

Europe is widely expected to clear another union between Syngenta and ChemChina in the next two weeks, with notification of a marriage between Monsanto and Bayer expected later in the year. Regulators in the U.S. and China will still have to approve the Dow-DuPont deal, but last week\u2019s EU decision is being seen by some analysts as a marker for future deals.<\/p>\n

Wondering how to get involved in opposing the agrochemical industry mergers? Reaching out to your U.S. Senators<\/strong><\/a>\u00a0and Representative<\/strong><\/a>\u00a0\u00a0to ask them to reject the approval of a merger that consolidates seed availability, and encourage them to instead focus on increasing the availability of organic seeds, which do not negatively affect soil, water, or human health is a good way to start. Additionally, reaching out to your state AG office<\/strong><\/a>\u00a0\u00a0and encouraging them to join the merger investigations is another way to ensure the DOJ takes action to block the mergers. Finally, you can educate yourself on organic practices, which work to build the soil and maintain an ecological balance that makes chemical fertilizers and toxic synthetic pesticides obsolete.<\/p>\n

All unattributed positions and opinions in this piece are those of Beyond Pesticides.<\/em><\/p>\n

Source: The Guardian<\/a>, Friends of the Earth Europe<\/a><\/p>\n

Photo: FOE Europe<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

(Beyond Pesticides, April 3, 2017) The European Union (EU) has approved a $130 billion mega-merger between two agrochemical giants, Dow Chemical Company and\u00a0DuPont Company, heralding a new round of takeovers that environmental and farm groups fear will reduce farmer choice, seed diversity, and endanger the future of sustainable food production. The consent to the merger was given with the requirement that Dow sells off its pesticide business, which it plans to do as part of\u00a0a\u00a0$1.6 billion asset swap with the FMC Corporation, a pesticide manufacturer. The Dow Chemical-DuPont deal is one in a series of mergers in the agriculture-chemicals sector being considered in the EU and also the U.S. The Dow-DuPont merger is happening alongside proposed mergers of Bayer and Monsanto, and Syngenta and ChemChina. On March 27th, a letter signed by 200 organizations across Europe was delivered to European Competition Commissioner Margrethe Vestage. The letter says that about 60% of commercial seed supplies will be centralized in the hands of just three multinational corporations if the mergers are all approved, and calls on EU regulators to step in and stop the deals and protect European farmers, and the European food system. The letter, organized by Friends of the Earth […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124,25,65,284,9,10,276],"tags":[],"class_list":["post-20353","post","type-post","status-publish","format-standard","hentry","category-announcements","category-corporations","category-dow","category-dupont","category-national-politics","category-pesticide-regulation","category-take-action"],"yoast_head":"\nDow-Dupont Mega-Merger Moving Forward In the EU, Raising Food Security Concerns - Beyond Pesticides Daily News Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/beyondpesticides.org\/dailynewsblog\/2017\/04\/dow-dupont-mega-merger-moving-forward-eu-raising-food-security-concerns\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dow-Dupont Mega-Merger Moving Forward In the EU, Raising Food Security Concerns - Beyond Pesticides Daily News Blog\" \/>\n<meta property=\"og:description\" content=\"(Beyond Pesticides, April 3, 2017) The European Union (EU) has approved a $130 billion mega-merger between two agrochemical giants, Dow Chemical Company and\u00a0DuPont Company, heralding a new round of takeovers that environmental and farm groups fear will reduce farmer choice, seed diversity, and endanger the future of sustainable food production. 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The consent to the merger was given with the requirement that Dow sells off its pesticide business, which it plans to do as part of\u00a0a\u00a0$1.6 billion asset swap with the FMC Corporation, a pesticide manufacturer. The Dow Chemical-DuPont deal is one in a series of mergers in the agriculture-chemicals sector being considered in the EU and also the U.S. The Dow-DuPont merger is happening alongside proposed mergers of Bayer and Monsanto, and Syngenta and ChemChina. On March 27th, a letter signed by 200 organizations across Europe was delivered to European Competition Commissioner Margrethe Vestage. The letter says that about 60% of commercial seed supplies will be centralized in the hands of just three multinational corporations if the mergers are all approved, and calls on EU regulators to step in and stop the deals and protect European farmers, and the European food system. 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