A Toxic Merger Update

A Toxic Merger Update

The controversial merger between Dow Chemical and DuPont remains fraught with issues. Despite being under investigation by the EU, Dow’s website seems to reveal that it sees the merger as a done deal since this year’s AGM, on an as-yet unspecified date, is purported to be taking place in Delaware- the home of DuPont’s HQ.

Elsewhere, DuPont has now made an offer to settle one of the most well-known C-8 contamination issues in Ohio, USA, which has the look of a smokescreen in front of what has the potential to blow-up into a much greater liability. In late January, we were reporting that trouble was brewing for the merger, thanks to DuPont’s C-8 liabilities: CLICK

Since then a $670.7 million settlement has been reached in principle to resolve the C8 lawsuits connected with the contamination emanating from DuPont’s Washington Works plant in Wood County, Ohio. This settlement, if agreed, would include the three cases previously tried in a federal court which have each received awards running in to the millions of dollars. This makes the $670m  proposed settlement sound like an extremely paltry amount given the 3,500 cases in the class action seeking damages from their exposure.

The settlement also has the look of a tactic designed to deflect attention away from other C-8 contamination issues with the potential to carry vast liabilities. There are known to be serious issues with C-8 contamination elsewhere in the US, as well as in the Netherlands and in other countries, and the issue has something of the look of a ticking time-bomb about it.

A useful blog post on worldwide C-8 contamination issues: CLICK

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