Dow Position with Respect to EU Decision on Chloroprene Rubber Cartel Investigation Pertaining to DuPont, Dow and DuPont Dow Elastomers
Dow has been informed that the European Commission has issued a Decision on the Chloroprene Rubber Cartel Investigation with respect to the activities of DuPont Dow Elastomers (DDE) LLC, a former joint venture between Dow and DuPont, and with respect to the activities of DuPont prior to the formation of DDE (the formation occurred in 1996). The product at issue is polychloroprene, which was sold by DDE and DuPont under the trade name NEOPRENE.
Pursuant to an April 2004 agreement, the response to this competition investigation by the European Commission is being managed by DuPont. Additionally, Dow withdrew from DDE in June 2005. That entity continues now under the name of DuPont Performance Elastomers.
In today’s decision the European Commission issued a fine against DuPont in the amount of 59.250 million euros. Of that amount, 48.675 million euros is for the activities of DDE. As announced between DuPont and Dow in 2004, DuPont agreed to fund 100 percent of any potential DDE antitrust liabilities and costs up to $150 million, with DuPont also funding more than 75 percent of the excess, if any. Consequently, Dow’s share of this fine against DuPont is not material as to Dow.
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