Dissecting Dow And DuPont Deal: Concern Over Concentration

All is not well with the proposed Dow (NYSE: DOW) and DuPont (NYSE: DD) deal. The impending merger is facing intense regulatory scrutiny in different countries, as well as opposition from farmers groups. The main concern is that if the merger is given the go ahead, it will increase the market power of suppliers in the already concentrated market for seed and agro-chemical products. We have analysed how the proposed merger will change the agri-industry dynamics using the Herfindahl-Hirschman Inde...