Australian Andrew Liveris poised to lead merged United States chemical giant

Media reports suggest that advanced talks are in progress that will lead to the newly formed company immediately being split into three individual companies: agriculture, specialty chemicals and materials.

Despite these uncertainties, analysts believe a deal “could well meet regulatory muster”, since the two companies do not directly compete in a lot of the biggest products and could exit assets in areas where they do overlap, the Journal added. DuPont employs more than 60,000 people worldwide, while Dow has more than 50,000 employees.

Caption + Traders gather at the post that handles Dow Chemical on the floor of the New York Stock Exchange, Wednesday, Dec. 9, 2015.

Sources reported that specifics of the deal had not been released and there’s a chance that negotiations could fall apart. Falling crop prices have put pressure on suppliers of seeds and pesticides while fueling merger discussions within the industry.

Andrew Liveris the CEO as Dow and Edward Breen the DuPont CEO would hold the top two jobs in the new company one person close to the situation said. But even in those markets, the companies compete against large rivals like Syngenta AG, Monsanto Co. and Bayer AG, he said.

Terms of the deal couldn’t be learned, but some of the people said it would be billed as a merger of equals, meaning there wouldn’t be a big premium for either set of shareholders.

“Clearly it does raise competition questions, given the leadership role of these two companies in the chemical industry”, Mr Bloom said.

A deal, should one be reached, would come as talks of consolidation in the agricultural-sciences industry have heated up, with companies scrambling to adjust to pressure on lower prices for their commodities.

In August, in response to Reuters reporting on Dow and Liveris, more than 100 community leaders and businesses in Midland ran advertisements in the local newspaper praising the company and its chief executive. According to NYT, more than $4 trillion worth of deals have already been struck since the beginning of the year.

A merger would beef up the companies’ operating segments in pesticides and agricultural seed technology, as well as in industrial materials such as DuPont’s Kevlar and Dow’s Styrofoam brand building insulation.

NEW YORK (AP) — U.S. stocks are mostly higher in early trading Wednesday as investors buy beaten-down stocks after two days of losses.

Both companies have a major presence in the automotive supply chain.

Despite strong support from DuPont, up 8.1% on speculation it plans to merge with Dow Chemical, the Dow Jones was off just shy of a hundred points at 17,468, while the broader-based S&P 500 was down 20 points at 2.043. The DuPont Co. was founded in 1802 by French immigrant E.I. DuPont, who established a gunpowder manufacturing operation along the Brandywine River in Wilmington.

Crude oil prices resumed their slide, after rising as much as 4 percent earlier in the day. Cost synergies could reach $3 billion, CNBC reported.

A truce began last November, when Dow agreed to appoint two new board directors of Third Point’s choosing, and two more selected by the company. The discount chain fell $10.10, or 6 percent, to $158.77.