DuPont And Dow make their huge merger official
The two largest chemical companies in America will become one entity named DowDuPont, as Dow Chemical and DuPont say they're joining in a "merger of equals."
The new company will have a market capitalization of around $130 billion, the company says.
After the merger, the resulting behemoth would be split into what Dow chairman and CEO Andrew N. Liveris calls "three powerful new companies." The mammoth deal will need to be reviewed by federal regulators.
The deal is expected to close in the second half of 2016, with the segmentation taking place up to two years later. Shareholders of Dow and DuPont will each own around 50 percent of the new enterprise.
Announcing the merger's details Friday, the company said:
"The parties intend to subsequently pursue a separation of DowDuPont into three independent, publicly traded companies through tax-free spin-offs. This would occur as soon as feasible, which is expected to be 18-24 months following the closing of the merger, subject to regulatory and board approval."
The three corporations will have distinct identities, according to a news release announcing the deal. Here's a list of relevant quotes, along with the projected revenue for each company:
Agriculture: "Leading global pure-play agriculture company that unites DuPont's and Dow's seed and crop protection businesses." Revenue: $19 billion.
Material Science: "A pure-play industrial leader, consisting of DuPont's Performance Materials segment, as well as Dow's Performance Plastics, Performance Materials and Chemicals, Infrastructure Solutions, and Consumer Solutions... operating segments. Revenue: $51 billion.
Specialty Products: "The businesses will include DuPont's Nutrition & Health, Industrial Biosciences, Safety & Protection and Electronics & Communications, as well as the Dow Electronic Materials business." Revenue: $13 billion.