Dow, DuPont successfully completes merger equals

Dow, DuPont successfully completes merger of equals

4:57 AM, 2nd September 2017
DowDuPont logo

MIDLAND/ WILMINGTON, US: The Dow Chemical Company and DuPont have successfully completed their merger of equals. The combined entity is operating as a holding company under the name DowDuPont with three divisions – agriculture, materials science and speciality products.

DowDuPont will be led by a proven leadership team that reflects the strengths and capabilities of both companies. Along with Andrew Liveris, executive chairman of DowDuPont and Ed Breen, chief executive officer of DowDuPont.

DowDuPont said that leaders and integration teams from both companies are developing operating models and organizations that will enable the three intended spinoffs expected to occur within 18 months.

Agriculture Company that brings together the strengths of DuPont pioneer, DuPont crop protection and Dow agrosciences. The combined capabilities and highly productive innovation engine will enable the intended Agriculture Company to bring a broader suite of products to the market faster, so it can be an even better partner to growers, delivering innovation and helping them to increase their productivity and profitability.

The intended company will be headquartered in Wilmington, Delaware, with global business centres in Johnston, Iowa, and Indianapolis, Indiana.

Materials Science Company, to be named Dow that will consist of the businesses comprising the following current Dow operating segments: Performance plastics, performance materials & chemicals, infrastructure solutions and consumer solutions (consumer care and Dow automotive systems; Dow electronic materials is intended to go to the specialty products company), as well as Dupont’s current performance materials operating segment.

The intended company will offer the strongest and broadest chemistry and polymers toolkit in the industry, with the scale and competitive capabilities to enable truly differentiated solutions for customers in high-growth end markets, including packaging, transportation, infrastructure and consumer care. The intended Materials Science Company will be headquartered in Midland, Michigan.

Specialty Products Company that will consist of powerful, market-leading businesses including DuPont protection solutions, sustainable solutions, industrial biosciences and nutrition & health, which will integrate the health and nutrition business from FMC pending the close of that transaction; as well as electronic technologies, which combines DuPont’s electronics & communications business with Dow’s electronic materials business unit.

The intended company will be an innovation leader composed of technology-driven speciality businesses with highly differentiated products and solutions that transform industries and everyday life. The intended Specialty Products Company will be headquartered in Wilmington, Delaware.

“We are extremely excited to complete this transformational merger and move forward to create three intended industry-leading, independent, publicly traded companies. While our collective heritage and strength are impressive, the true value of this merger lies in the intended creation of three industry powerhouses that will define their markets and drive growth for the benefit of all stakeholders,” said Andrew Liveris, executive chairman of DowDuPont.

“DowDuPont is a launching pad for three intended strong companies that will be better positioned to reinvest in science and innovation, solve our customers’ ever-evolving challenges, and generate long-term returns for our shareholders. With the merger now complete, our focus is on finalizing the organizational structures that will be the foundations of these three intended strong companies and capturing the synergies to unlock value,” added Ed Breen, chief executive officer of DowDuPont.

Klein and Company, Lazard and Morgan Stanley & Co LLC served as Dow’s financial advisors for the transaction, with Weil, Gotshal & Manges LLP acting as its legal advisor.

Evercore and Goldman, Sachs & Co served as DuPont’s financial advisors for the transaction, with Skadden, Arps, Slate, Meagher & Flom LLP acting as its legal advisor.

© Worldofchemicals News 

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