“This transaction is a major accelerator in Dow’s ongoing transformation, and through this we are creating significant value and three powerful new companies”.
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The companies’ shareholders and the mergers should approve fusion of both the companies by second half of 2016. DuPont CEO Ed Breen, 59, will be CEO of the new company. “For DuPont, this is a definitive leap forward on our path to higher growth and higher value”.
Analysts have said a Dow-DuPont tie-up might push Monsanto Co to take another shot at Syngenta after the us company abandoned a $45 billion offer for the Swiss company in August. Dow Chemical and DuPont today announced plans to merge the two companies into one.
Under the deal’s terms, shareholders of Dow Chemical will get one share in the new company called DowDuPont for each Dow share, while DuPont shareholders will get 1.282 shares for each DuPont share.
The business is expected to supply more than 40% of the corn seed market, and slightly less of the soybean seed market. However, after the companies confirmed the merger of equals on Friday morning, both were giving back their gains in what seems to be incredible disappointment on the investor side. They both have such a heavy focus on innovation.
The planned agriculture company would combine the seed and crop protection businesses of DuPont and Dow.
Fitterling said bringing the two companies together in this area will provide the scale needed to succeed.
“DuPont and Dow are two titans of American industry and the proposed merger demands serious scrutiny”, he said in a statement. That segment is valued at $51 billion.
Specialty products: All of the products that fit into the “other” category will be part of the new specialty products business. Combined pro forma 2014 revenue for agriculture was about $19 billion. Breen is to lead the Agriculture and Specialty Products Committees. In addition, the companies announced separate restructuring steps.
Mr Liveris will be named executive chairman of the combined company while DuPont Chairman and CEO Edward Breen will be CEO. Dow avoided a proxy fight past year by adding four independent directors, giving board seats to two Loeb nominees. DuPont’s automotive unit ranks No. 64 on the Automotive News list of the top 100 global suppliers with estimated worldwide sales to automakers of $3 billion in 2014.
The company will have dual headquarters in MI and DE where the two companies are now based.
In May, DuPont CEO Ellen Kullman won a proxy battle waged by Trian Fund Management, the activist investor co-founded by Nelson Peltz, which said a breakup of the company would save billions of dollars in costs. They will be spun off roughly 18 to 24 months after the merger is completed.
Dow Chemical and the DuPont Co are merging in a $130 billion chemical industry mega deal.
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Both Dow and Dupont have operations in West Virginia.
