Dow, Dupont Agree to Merge

On Dec. 11, DuPont and The Dow Chemical Company announced that their boards of directors unanimously approved a definitive agreement under which the companies will combine in an all-stock merger. The combined company will be named DowDuPont.

The parties intend to subsequently pursue a separation of DowDuPont into three independent, publicly traded companies. This is expected to occur in the next 18-24 months, subject to regulatory and board approval.

The three businesses that the boards intend to create are:

• An Agriculture Company that unites DuPont’s and Dow’s seed and crop protection businesses.
• A Material Science Company consisting of DuPont’s Performance Materials segment, as well as Dow’s Performance Plastics, Performance Materials and Chemicals, Infrastructure Solutions, and Consumer Solutions (excluding the Dow Electronic Materials business) operating segments. .
• A Specialty Products Company focused on unique businesses that share similar investment characteristics and specialty market focus. The businesses will include DuPont’s Nutrition & Health, Industrial Biosciences, Safety & Protection and Electronics & Communications, as well as the Dow Electronic Materials business.

Upon completion of the transaction, Andrew Liveris, president, chairman and CEO of Dow, will become Executive Chairman of the newly formed DowDuPont Board of Directors and Edward Breen, chair and CEO of DuPont, will become chief executive officer of DowDuPont.

Following the closing of the transaction, DowDuPont will be dual headquartered in Midland, Michigan and Wilmington, Delaware.