United States stocks are mostly lower at midday as an early gain fades

What: In a story first reported by The Wall Street Journal, Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) are reportedly closing in on a merger, which could be announced in the coming days. “We encourage all stakeholders in this proposed merger to examine the multitude of outstanding liabilities facing this company before the proposed merger is completed, especially in light of the Chemours spinoff this past summer, which resulted in plummeting share prices and a company that is failing”. The Journal reported that Mr Liveris is expected to be executive chairman of the merged company while DuPont CEO Ed Breen would retain that title. As chief executive of Tyco, he oversaw its split into three separate companies, including the home alarm unit ADT, a valve-and-pipe unit, and a commercial fire and security business. There’s no guarantee a deal will get done and talks may still fall apart, the people said.

A deal would face approval by regulators in a number of countries, but would allow the two companies based in the U.S.to shuffle assets based upon their diverging fortunes.

Low crop prices have also remained a problem for the agriculture sector and mergers speculation to ease the pain has been rife.

If the deal goes through, it would be yet another blockbuster merger in what has already been one of the most fruitful years for deal makers. More than $4 trillion worth of deals have been struck since the beginning of this year, surpassing 2007 as the busiest year for acquisitions. Combined, the two companies would be the second-biggest chemical company in the world, in terms of revenue, after BASF of Germany, with more than $92 billion in annual sales.

Energy and materials companies moved higher along with the price of oil and other commodities.

But both companies have been the target of activist investors, with Dan Loeb pressuring Dow to weigh a breakup and Nelson Peltz pushing a breakup of DuPont. Monsanto Co. earlier this year abandoned a $46 billion bid for Syngenta amid resistance from the Swiss company. Liveris reportedly wants to streamline their business so that they can then be broken up into “more focused operations”.

On the agricultural side of their businesses, analysts have long spoken of the merits of a combination between Dow and DuPont.

CURRENCIES: The dollar fell to 121.36 yen from 121.59 in the previous trading session.

In recent years, however, both companies have focused on agriculture, as global demand for increased food supplies has driven sales of genetically engineered seeds, fertilizer, herbicides and pesticides.

Benchmark U.S. crude slipped 35 cents to close at $37.16 a barrel in NY.

Since it’s founding on the banks of the Brandywine River in Wilmington, DuPont has dominated the DE business scene. Dow, meanwhile, has gotten out of selling materials like chlorine and the epoxy used in everything from space travel to Ziploc bags. Monsanto CEO Hugh Grant said last month that “everybody has been talking to everybody” in the industry. Peltz proved the point by almost ousting director candidates backed by former DuPont CEO Ellen Kullman in a shareholders’ vote last spring.

“The market in general seems to be following commodities, specifically oil, and when it rolled back over into negative territory the market seemed to follow”, said Walter Todd, who oversees about $1.1 billion as chief investment officer for Greenwood Capital Associates in SC. The companies are targeting about $3 billion in cost cuts, according to people familiar with the discussions.

Dow has also had an activist investor.