DuPont, Dow Chemical get merged

DowDuPont is estimated to have annual sales of around $83 billion, with a little more than $54 billion coming from Dow and just over $28 billion from DuPont.

Dow Chemical and DuPont said that the creation of the world’s biggest agrichemicals and seeds company, stemming from their $130bn merger, would be created with only minor risk of the concentration of market powers which trigger antitrust concerns. He’s concerned the proposed merger, along with its plan to eventually break up the new Dow-DuPont into three separate companies, will mean layoffs.

The merger, the largest ever in the chemicals industry, will combine products from both Dow and DuPont in the areas of agriculture, commodities chemicals and specialty chemicals to create the new businesses. DuPont Chief Executive Officer Ed Breen will be CEO of the new company and Dow CEO Andrew Liveris would be executive chairman.

Liveris will be named executive chairman of the combined company while DuPont Chairman and CEO Edward Breen will be CEO.

The merger transaction is expected to close in the second half of 2016. The global value of announced deals so far this year is $4.75 trillion, surpassing the prior record of $4.61 trillion set in 2007, according to the research firm Dealogic. DuPont shares were down 4.4 percent at 71.25 in premarket trading while Dow’s were down 1.8 percent at 53.92. Dow fell 3 percent and DuPont dropped 5.5 percent in an overall down day on Wall Street.

The specialty products company would combine DuPont’s nutrition and health, industrial biosciences, safety and protection, and electronics and communications segments with Dow’s electronic materials business. In the a year ago, It too has faced criticism from an activist investor. Last month, Syngenta rejected a $42 billion offer from state-owned China National Chemical Corp.

DuPont-Pioneer headquarters in Johnston. The intention of both parties is to establish three independent, publicly-traded companies through tax-free spinoffs. Breen, 59, will oversee the other two divisions.

“All I can say is you know until we know more it’s hard to conclude anything”, Paquette said. But it is likely to face intense regulatory scrutiny given an extensive ovelap of their agriculture businesses.

“These are highly complementary businesses”.

“Typically the result of mergers is job cuts and companies move out of communities”.

Together, the two companies claim they will save $3 billion in cost savings annually, which will lead to $30 billion in additional market value.

After the merger, the company plans to divide into separate entities. “The state is committed to supporting those affected by DuPont’s cost cutting in DE”.

Seeds and chemical maker Dow Chemical Co (DOW.N) said it would assume full control of Dow Corning, its joint-venture with Gorilla glass maker Corning Inc (GLW.N).

Investors will get one DowDuPont share for each Dow share, and 1.282 DowDuPont shares for each one of DuPont. Under terms of this deal, shareholders will each have equal stakes of the merged company called DowDuPont, excluding preferred shares.

The Pesticide Action Network calls Dow, Dupont, BASF, Monsanto, Syngenta, and Bayer the ‘Big 6’ of the seed, pesticide, and biotechnology industries. Seaford was home to DuPont’s first Nylon plant for many years, and House Minority Leader Dan Short, Republican of Seaford, tells Delaware1059…

The new company will go by the name DowDuPont.