Dow Chemical and DuPont, the two largest chemical companies in the United States have agreed to terms, joining in a “merger of equals” to form DowDuPont.
This is the largest deal ever in the chemical industry and will create a $130 billion company with products from both Dow and DuPont in areas of agriculture, commodities chemicals, and specialty chemicals.
Within the next two years, it intends to pursue a separation of the combined company into three independent companies – an agriculture company, a material science company, and a specialty products company.
The new company, will be owned equally by the current shareholders of both companies – Andrew Liveris will be named executive chairman and Edward Breen will be named CEO of the combined company. Liveris calls the deal a game-change for the industry.
In response to the announcement, National Corn Growers Association president Chip Bowling says the association is committed to protecting the best interest of its members and the nation’s corn farmers. He anticipates an opportunity to submit comments about the effect the merger may have on agriculture.
Roger Johnson, president of the National Farmers Union expressed frustration about the merger, saying “The federal government has shown its willingness to approve giant acquisitions and mergers that harm competition.”
Pending regulatory approval, the merger is expected to close in the second half of 2016.
Source: www.brownfieldagnews.com