DuPont, Dow Intend To Merge
December 11, 2015 DuPont and The Dow Chemical Company announced today their boards of directors unanimously approved an agreement under which the companies will combine in an all-stock merger of equals.
Upon closing of the transaction, the combined company would be named DowDuPont and have a combined market capitalization of approximately $130 billion at announcement.
Andrew N. Liveris, Dow’s chairman and chief executive officer will become Executive Chairman of the newly formed DowDuPont Board of Directors, and Edward D. Breen, chairman and chief executive officer of DuPont, will become Chief Executive Officer of DowDuPont.
Following the closing of the transaction, DowDuPont will be dual headquartered in Midland, MI, and Wilmington, DE.
The companies intend to subsequently pursue a separation of DowDuPont into three independent, publicly traded companies through tax-free spin-offs. This would occur as soon as feasible, which is expected to be 18-24 months following the closing of the merger, subject to regulatory and board approval.
The companies will include a global agriculture company, a global pure-play Material Science company, and a technology- and innovation-driven specialty products company.
According to a press release, the combined agriculture company will have a comprehensive and diverse portfolio and a robust pipeline with exceptional growth opportunities in the near-, mid- and long-term. The complementary offerings of the two companies will provide growers across geographies with a broad portfolio of solutions and greater choice. Combined pro forma 2014 revenue for agriculture is said to be approximately $19 billion.
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