Categories: Business

Dow Chemical and DuPont Announce $130 Billion Merger Plan

Dow Chemical and DuPont have announced a plan to merge, in a deal valuing them at $130 billion.

The all-share deal will eventually lead to the merged company, initially to be called DowDuPont, being split in three.

The three companies would focus on agriculture, materials and specialty products.

If the merger is cleared by regulators, the new company will be owned equally by current Dow and DuPont shareholders.

The chemical giants aim to achieve the split into three within two years of the completion of the merger.

They hope to save $3 billion through cost-cutting during that period.

Potential tax savings were one reason for the complicated merger-before-breakup deal, analysts said.

At the same time, DuPont announced a cost-saving plan that will involve cutting about 10% of staff.

Dow CEO Andrew Liveris will be executive chairman of the new company, while DuPont CEO Ed Breen will be the new chief executive.

“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,” Andrew Liveris said.

Shares in Dow Chemical closed down 2.8% in New York, while DuPont fell 5.5% on December 11.

Dow also said that it would assume full control of its joint venture with glassmaker Corning.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago