Dow, DuPont to merge, then split in 3

Source: By Jordan Blum, Fuel Fix • Posted: Tuesday, December 15, 2015

Dow Chemical Co. and DuPont Co. said today that they will combine to form the nation’s largest chemicals and plastics company before splitting into three companies.

The two companies, some of the nation’s oldest, will have a combined $130 billion in market capitalization when they form the new DowDuPont Co.

The companies will then form three companies for agriculture, material science and specialty products.

The companies said the all-stock deal will see Dow President, Chairman and CEO Andrew Liveris as the executive chairman of the new company and DuPont Chairman and CEO Edward Breen as the CEO.

The two men will report to a board of directors of 16 people, with half coming from each company.

“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,” Liveris said. “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.”

Spinning off the three new companies is expected to take 18 to 24 months after the closure of the merger, which will need to be approved by federal regulators. The merger may not close until the second half of next year, with the spinoffs completed by 2018.