U.S. Justice Dept should analyze Dow-DuPont deal -Sen. Grassley
By Tom Polansek
CHICAGO, June 14 (Reuters) - The U.S. Department of Justice's antitrust division should "conduct a careful analysis" of Dow Chemical Co's proposed $130 billion merger with DuPont to ensure it will not hurt competition in the farming sector, U.S. Senator Charles Grassley said on Tuesday.
The Republican from Iowa, in a letter to the agency, said he was concerned the planned tie-up "will decrease competition in an agriculture sector that has already been subject to a number of waves of consolidation in recent years."
His request increases scrutiny on the potential risks from a surge of consolidation in agriculture that some farmers and lawmakers fear could harm innovation in the industry and raise prices for products for both growers and consumers.
A global downturn in grain prices and a strong dollar have reduced U.S. farm income and prompted farmers to cut spending. That has eaten into sales of the big six agrochemical and seed companies who are now looking to bolster profits through mergers and partnerships.
In addition to Dow's proposed merger with DuPont, Chinese state-owned China National Chemical Corp plans to acquire Swiss crop chemical company Syngenta AG, and Bayer AG has made a bid to acquire Monsanto Co, the world's largest seed maker.
Grassley, who chairs the senate's judiciary committee and serves on the agriculture committee, in March joined other senators asking for the U.S. government panel that reviews foreign acquisitions to assess the impact on domestic food security from ChemChina's planned $43 billion acquisition of Syngenta AG.
The U.S. Department of Agriculture has agreed to join the panel, people familiar with the matter have told Reuters, in a move that subjects the deal to additional government scrutiny.
(Reporting by Tom Polansek; Editing by Alan Crosby)
