Dow Chemical and DuPont Agree to Megamerger of $130 Billion

Culminating a week’s worth of speculation and suspense, Dow Chemical and DuPont have announced the largest-ever merger between two chemical companies.

Dow harks back to 1897, after Herbert Henry Dow discovered a new way to extract the element bromine – then a useful ingredient in medicine and photographic materials – from brine located in wells around Midland, Michigan, its current base.

DuPont and The Dow Chemical Company have agreed to an all-stock merger that will bring together two of the largest chemical industry titans in the United States.

“We believe this strategic realignment will create significant value for our shareholders by further focusing our portfolio and increasing our financial strength.”

But Breen said he and Liveris have created cost-cutting plans that should spare the most basic R&D, as well as sales teams. The eventual breakup of DowDuPont into three independent, publicly traded companies through tax-free spin-offs is expected over 18 to 24 months following the completion of the merger in the second half of 2016. “ASA looks forward to the opportunity to provide comments to the companies and USA regulatory authorities that must approve any merger, and will continue to study how this merger will affect soybean farmers”. DuPont on Friday said that even before the merger, it plans to cut about 10% of its global workforce.

Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, said in a statement that the proposed merger “demands serious scrutiny”. “And I would say, just looking at it, consolidation should happen”.

Fitterling said the businesses are complementary, and will combine to form the No. 2 player in the world in this market, behind BASF.

“They’ll be able to make, probably, better investments”, King said of the new ag company’s leaders. Dow has 500 employees in DE, so streamlining will be necessary.

“This change serves as another stark reminder that we can’t take anything for granted in today’s rapidly evolving economy. And I think people sometimes underestimate the importance of that in the long term”, said Jim Fitterling. “I hope and trust that DuPont and Dow will seriously consider the many benefits of retaining business and jobs in Delaware”. Antitrust Concerns: Despite its size and complexity, the deal could overcome antitrust concerns with modest divestitures, according to analysts who track the companies.

Fitterling said he is optimistic these moves will pay big dividends for Dow.

In its patent application for Lycra, DuPont highlighted some of the features that would make Lycra famous: The “outstanding properties” suggesting “many applications in the film and fiber fields”, including a “high elasticity”.

Breen said on CNBC that Peltz was “very supportive” of the Dow deal. Chris Coons in his own statement. It is not known how many DE employees will be impacted. “That means more of your paycheck will be going to them, directly or indirectly”.

The companies said the proposed merger of equals, approved unanimously by their respective directors, will result in cost synergies of about $3bn that are projected to create approximately $30bn of market value. Kuwait’s sovereign wealth fund also helped and got $1 billion of the securities.

Dow and DuPont shareholders will each own approximately 50 percent of the combined company, Dow shareholders will receive one share of DowDuPont for each Dow share, and DuPont shareholders will receive 1.282 shares in DowDuPont for each DuPont share.