In a multibillion-dollar asset swap, DuPont is selling part of its crop protection operation to FMC and picking up nearly all of FMC’s health and nutrition business. As part of the deal, FMC will acquire a DuPont’s agricultural research center in Newark and turn it into the global research and development center for FMC, which is based in Philadelphia, says the Wilmington News Journal.
“Under the agreement, FMC will buy DuPont’s Cereal Broadleaf Herbicides and Chewing Insecticides portfolio, including Rynaxypyr, Cyazypr and Indoxacarb. It will also get DuPont’s crop protection research and development pipeline with the exception of seed treatment, nematicides and late-stage research program. The assets being divested generated about $1.4 billion in revenue last year, according to DuPont’s regulatory filings,” said the News Journal.
Last week, EU regulators approved DuPont’s merger with Dow on the condition it divested itself of some of its agricultural operations as a way to assure competition in the seed and ag-chemical sector. DuPont chief executive Ed Breen told the News Journal that the company was “very deep into the conversation” with U.S. regulators in seeking antitrust clearance for the merger. The newspaper quoted Breen as saying,”I would expect the process to move rather rapidly now. Our agriculture remedy was a global one; it was not specific to Europe.”