Dow Chemical (DOW) Stock Rising on EU Concessions for $130 Billion DuPont Deal

Dow Chemical (DOW) and DuPont (DD) have offered concessions to ease EU antitrust concerns over their proposed $130 billion merger.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Dow Chemical (DOW) - Get Report  are rising 0.53% to $53.56 this morning as the company offered concessions to dispel EU antitrust worries over its proposed merger with DuPont (DD).

The companies are seeking regulatory approval for a $130 billion merger that was first introduced in December 2015. They plan to combine before splitting into three separate entities, TheStreet's Anders Keitz explains in the above video.

Dow and DuPont first placed their offer with the European Commission on July 20, but the EU competition enforcer has delayed its decision on the deal to August 11 from July 28.

The commission could either accept the concessions if it receives positive feedback from external parties or it could demand more if it feels the moves have been insufficient to avoid antitrust issues, Reuters reports.

The Department of Justice is also reviewing the merger of Dow, based in Midland, MI, and DuPont, based in Wilmington, DE.

Shares of DuPont are up 0.65% to $69.34 this morning.

(Dow Chemical is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, notable return on equity and solid stock price performance. TheStreet Ratings finds that its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: DOW

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