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Justice Department Enforces Anti-Trust In Ag Merger

The Justice Department say it will enforce the anti-trust law in the proposed Dow-DuPont merger, according to the Chair of the Senate Judiciary Committee Chuck Grassley.

Grassley says they will fully enforce Section 7 of the Clayton Act, which addresses specific anti-trust practices the Sherman Act does not clearly prohibit, like mergers and interlocking directorates that substantially lessen competition.

If allowed, DowDuPont would control 76 percent of the corn seed market and 66 percent of the soybean seed market, with other changes that could significantly change the landscape of the seed industry.

Grassley says, "Considered individually these transactions may not present substantial opposition, however, if these transactions are completed in the same year the industry would be substantially transformed the current structure of the six major seed and chemical companies would be reduced to four only. One of which would be owned by the Chinese government."

Grassley says he is still considering on whether to holding hearings on the merger, but short of blocking the Dow-DuPont merger, Grassley says the Justice Department can modify the deal.