DuPont Dow Elastomers faces loss from EPDM probe

DuPont Dow Elastomers faces loss from EPDM probe

Dow Chemical and DuPont say in separate regulatory filings that they expect their 50-50 DuPont Dow Elastomers joint venture to incur losses as a result of an investigation by European and U.S. officials into possible anticompetitive in synthetic rubber markets.

DuPont Dow Elastomers has been subpoenaed in connection with the probe. "Management recognizes that it is probable that DuPont Dow will incur a loss as a result of the investigations and civil litigation," DuPont says. "However, a range of such losses cannot be reasonably estimated at this time."

In its regulatory filings, Dow Chemical says that it "is probable that a loss will be incurred at DuPont Dow, but it is impossible at this time to estimate the range or amount." The filing did not disclose whether the losses would be incurred as a result of fines, civil judgements, or both. Crompton, a leading ethylene-diene propylene monomer (EPDM) manufacturer, said last year that it notified antitrust authorities about possible antitrust violations and has been granted conditional amnesty from criminal prosecution and fines that may result in the U.S., Europe, and Canada. Bayer and DSM say their offices in Europe have been raided in connection with the probe.