Dow, DuPont Reach Agreement on Merger
Combined entity to be known as DowDuPont; will be dual headquartered in Midland, Michigan and Wilmington, Delaware.
Dow and DuPont have reached a merger agreement that will combine each of their operations and subsequently split it into three entities – one for agriculture, one for material science and one for specialty products. The new company is expected to be named “DowDuPont.”
Finalization is expected to be completed in 18-24 months and is subject to regulatory and board approval.
“This transaction is a game-changer for our industry and reflects the culmination of a vision we have had for more than a decade to bring together these two powerful innovation and material science leaders,” says Andrew N. Liveris, Dow’s chairman and CEO. “Over the last decade our entire industry has experienced tectonic shifts as an evolving world presented complex challenges and opportunities – requiring each company to exercise foresight, agility and focus on execution. This transaction is a major accelerator in Dow’s ongoing transformation, and through this we are creating significant value and three powerful new companies. This merger of equals significantly enhances the growth profile for both companies, while driving value for all of our shareholders and our customers.”
Adds Edward D. Breen, DuPont chairman and CEO: “This is an extraordinary opportunity to deliver long-term, sustainable shareholder value through the combination of two highly complementary global leaders and the creation of three strong, focused, industry-leading businesses. Each of these businesses will be able to allocate capital more effectively, apply its powerful innovation more productively, and extend its value-added products and solutions to more customers worldwide. For DuPont, this is a definitive leap forward on our path to higher growth and higher value. This merger of equals will create significant near-term value through substantial cost synergies and additional upside from growth synergies. Longer term, the three-way split we intend to pursue is expected to unlock even greater value for shareholders and customers and more opportunity for employees as each business will be a leader in attractive segments where global challenges are driving demand for these businesses’ distinctive offerings.”
Upon completion of the transaction, Liveris will become executive chairman of the newly formed DowDuPont Board of Directors and Breen will become CEO of DowDuPont.
DowDuPont’s board is expected to have 16 directors, consisting of eight current DuPont directors and eight current Dow directors.
Following the closing of the transaction, DowDuPont will be dual headquartered in Midland, Michigan and Wilmington, Delaware.
Read the full press release by clicking here.