Dow and DuPont complete merger, new company begins trading on Friday

Source: ICIS News

2017/09/01

LONDON (ICIS)--Dow Chemical and DuPont have completed their merger with the DowDuPont holding company due to start trading today on the New York Stock Exchange under the ticker symbol DWDP, the companies said on Friday.

The long-awaited $130bn “merger of equals” has created a company with three divisions – Agriculture, Materials Science and Specialty Products. See www.dow-dupont.com

Shares DuPont and Dow ceased trading at the close on the NYSE on 31 August. Dow shareholders have received a fixed exchange ratio of 1.00 share of Dow DuPont for each Dow share. DuPont shareholders have received a fixed exchange ratio of 1.282 shares of DowDuPont for each DuPont share, the companies added.

The largest merger in chemicals will see the divisions of the holding company eventually established as their own legal entities subject to board and regulatory approvals. The DowDuPont board review of the portfolio and the expected separations are expected to take about 18 months.

Some controversy has surrounded the eventual make up of the merger spin-offs, with intense activist investor pressure for further refinement to, in their analysis, create greater shareholder value.

DowDuPont says it will create a leading agriculture company comprising DuPont Pioneer, DuPont Crop Protection and Dow AgroSceinces.

The materials sciences company will be called Dow and include Dow’s Performance Plastics, Performance Materials & Chemicals, Infrastructure Solutions and Consumer Solutions (Consumer Care and Dow Automotive Systems; Dow Electronic Materials is intended to go to the new specialty products company), as well as DuPont’s current Performance Materials operating segment.

The specialties company will include DuPont Protection Solutions, Sustainable Solutions, Industrial Biosciences and Nutrition & Health, which will integrate the Health and Nutrition business from FMC pending the close of that transaction; as well as Electronic Technologies, which combines DuPont’s Electronics & Communications business with Dow’s Electronic Materials business unit, the companies said.

“Today marks a significant milestone in the storied histories of our two companies,” executive chairman of DowDuPont, Andrew Liveris, said. “We are extremely excited to complete this transformational merger and move forward to create three intended industry-leading, independent, publicly traded companies.

“While our collective heritage and strength are impressive, the true value of this merger lies in the intended creation of three industry powerhouses that will define their markets and drive growth for the benefit of all stakeholders. Our teams have been working for more than a year on integration planning, and -- as of today -- we will hit the ground running on executing those plans with an intention to complete the separations as quickly as possible.”

DowDuPont CEO Ed Breen, said: “For shareholders, customers and employees, closing this transaction is a definitive step toward unlocking higher value and greater opportunities through a future built on sustainable growth and innovation.

“With the merger now complete, our focus is on finalising the organizational structures that will be the foundations of these three intended strong companies and capturing the synergies to unlock value. With clear focus, market visibility and more productive R&D, each intended company will be equipped to compete successfully as an industry leader.”