The European Commission has cleared the merger subject to conditions
The proposed $130bn (£103bn) merger of agro-chemical businesses Dow and DuPont has been approved by the European Commission.
The approval is subject to conditions, with particular emphasis on the DuPont divesting major parts of its global pesticide business.
Commissioner Margrethe Vestager, competition policy, said: "Pesticides are products that matter – to farmers, consumers and the environment.
“We need effective competition in this sector so companies are pushed to develop products that are ever safer for people and better for the environment,” he said.
“Our decision today ensures that the merger between Dow and DuPont does not reduce price competition for existing pesticides or innovation for safer and better products in the future."
There were concerns the merger would reduce competition on prices, products and innovation.
But the commission was satisfied commitments by Dow and DuPont addressed these concerns with the companies removing the overlap in pesticides between the two businesses.
The merger is one of three big deals in the agrochemical industry with ChemChina’s purchase of Syngenta and Bayer’s merger with Monsanto also awaiting approval.
The Commission said it would consider each case on its own merits and the approval has been based upon current market conditions.