The Dow Chemical Company and DuPont successfully completed their US$130bn merger on 1 September, bringing the chemical giants together as one under the name DowDuPont for the time being.
Andrew Liveris, the executive chair of the newly formed company, called finalising the merger – announced in December 2015 – a “significant milestone” for both 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,” said Liveris in a statement.
DowDuPont would operate as a single entity with three divisions – Agriculture, Materials Science and Specialty Products – for up to 18 months before spinning off the divisions into separate legal entities once their processes, assets and licenses are in place.
The Agriculture company would combine the hybrid seed and GM crop producer DuPont Pioneer, DuPont Crop Protection and Dow Agrosciences, with its headquarters located in Wilmington, Delaware, and two global business centres in Johnston, Iowa, and Indianapolis, Indiana.
The Material Science company would retain the name Dow and consist of Dow’s Performance Plastics, Performance Materials & Chemicals, and Infrastructure Solutions and Consumer Solutions segments in addition to DuPont Performance Materials, with its intended headquarters located in Midland, Michigan.
The Specialty Products company would bring together DuPont Protection Solutions, Sustainable Solutions, Industrial Biosciences, and Nutrition & Health segments, in addition to DuPont Electronics & Communications and Dow Electronic Materials. The company’s headquarters were set to be located in Wilmington, Delaware.
“With the merger now complete, our focus is on finalizing 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,” said DowDuPont CEO Ed Breen.
The DowDuPont board of directors would comprise 16 members, eight from both companies’ current boards, with Jeffrey Fettig, previously Dow’s load independent director, and Alexander Cutler, ex-DuPont lead independent director, as lead directors.
Dow’s and DuPont’s shares ceased trading on 31 August and DowDuPont began trading on the New York Stock Exchange on 1 September.
Dow shareholders received a fixed exchange ratio of 1.00 share of DowDuPont for each Dow share, and DuPont shareholders received a fixed exchange ratio of 1.282 shares of DowDuPont for each DuPont share.