Dow Chemical Co. and DuPont Co., two historic giants of US industry, will join in an all-stock merger of equals that’s the first step in a plan to create three new highly-focused businesses.
The deal, the largest ever in the chemicals industry, will create a US$130 billion ($183 billion) company that combines products from both Dow and DuPont in the areas of agriculture, commodities chemicals and specialty chemicals to create the new businesses. The agreement, percolating since at least February, comes after two years of pressure from activist investors who argued that shareholders of both companies would realise greater value if they were broken up.
The new company, DowDuPont, will be owned 50-50 by the current shareholders of both companies, they said Friday in a joint statement. Dow Chief Executive Officer Andrew Liveris, 61, will become executive chairman. DuPont CEO Ed Breen, 59, will be CEO of the new company.
Investors will get one DowDuPont share for each Dow share, and 1.282 DowDuPont shares for each one of DuPont. The eventual breakup of DowDuPont into three independent, publicly traded companies through tax-free spin-offs is expected over 18 to 24 months following the completion of the merger.
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The deal, the largest ever in the chemicals industry, will create a US$130 billion ($183 billion) company that combines products from both Dow and DuPont in the areas of agriculture, commodities chemicals and specialty chemicals to create the new businesses. The agreement, percolating since at least February, comes after two years of pressure from activist investors who argued that shareholders of both companies would realise greater value if they were broken up.
The new company, DowDuPont, will be owned 50-50 by the current shareholders of both companies, they said Friday in a joint statement. Dow Chief Executive Officer Andrew Liveris, 61, will become executive chairman. DuPont CEO Ed Breen, 59, will be CEO of the new company.
Investors will get one DowDuPont share for each Dow share, and 1.282 DowDuPont shares for each one of DuPont. The eventual breakup of DowDuPont into three independent, publicly traded companies through tax-free spin-offs is expected over 18 to 24 months following the completion of the merger.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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