DuPont and Dow confirm merger
16 Dec 2015
Dow Chemical Company and DuPont have today announced plans to join forces.
The two companies, known collectively as DowDuPont, described the partnership as an “all-stock merger of equals”.
“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,” said Andrew N. Liveris, Dow’s chairman and chief executive officer.
This transaction is a game-changer for our industry and reflects the culmination of a vision we have had for more than a decade
Dow chairman Andrew N. Liveris
“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,” he added.
Once the merger has closed, DowDuPont said it will pursue a separation into three independent, publicly traded companies through tax-free spin-offs within the next two years.
The three new companies will consist of a global pure-play agriculture company; a global pure-play material science company; and a technology and innovation-driven ’specialty products’ company.
“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,” said Edward D. Breen, chairman and chief executive officer of DuPont.
“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.
“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,” Breen added.
Through the merger, Liveris will be named executive chairman and Breen will be named chief executive officer. Advisory Committees will also be established for each new business.
