HOUSTON (ICIS)--Dow Chemical and DuPont have agreed to extend the "outside date" for their $130bn merger to 31 August, the US chemical majors said on Friday.
The merger, first announced in December 2015, is now expected to close "no earlier than 1 August", they said.
Earlier on Friday, DuPont, in announcing the divestment of part of it crop chemicals business to FMC, said that the merger with Dow into DowDuPont was now expected to close between 1 August and 1 September.
The divestiture to FMC, which will satisfy DuPont's commitments to the European Commission in connection with the Commission’s conditional clearance this week of DowDuPont, is expected to close in the fourth quarter, subject to the closing of DowDuPont, in addition to other customary closing conditions, including regulatory approvals.
Dow and DuPont reiterated that the planned separation of the merged DowDuPont into three independent companies – agriculture, materials sciences and specialty products – is expected to occur within 18 months after closing of DowDuPont.
The material science company is expected to be the first spin-off, they added.
The companies continue to expect the merger to generate about $3bn of cost synergies and $1bn of growth synergies, they said.
"This revised agreement was necessary and a very positive outcome driven by the transaction with FMC, announced by DuPont today," said Andrew Liveris, CEO of Dow Chemical.
"It is another significant milestone in our progress to complete this value-creating transaction and the subsequent intended spins as swiftly as possible and without any change to the committed synergies," Liveris said.
DuPont CEO Edward Breen added that the transaction with FMC enables DuPont and Dow to satisfy the European Commission's approval conditions, "while maintaining the strategic logic and value creation potential of our merger and the three independent companies we intend to create".