17th December 2017

DOW-DUPONT DEAL SET TO CLOSE

Chemicals giants The Dow Chemical Co. (Midland, Michigan) and DuPont (Wilmington, Delaware) have revealed that all required regulatory approvals and clearances have now been received, signaling a culmination date for the two companies’ merger.The US$130-billion deal was announced in 2015, but has had to clear various regulatory hurdles.

The merger is to close on August 31, after the close of markets. The two companies' shares will cease to trade at that point, and on September 1, DowDuPont will begin trading on the New York Stock Exchange under the ticket DWDP. DuPont's CEO Edward Breen (left in picture) will serve as CEO of DowDuPont, and Dow CEO Andrew Liveris will fill the role of executive chairman.

Spin-offs are still expected to occur within 18 months, the company splitting into three different entities. The US Department of Justice and Federal Trade Commission approved the DowDuPont transaction in mid-June, on the condition that each company make divestitures, which had already been announced.

The Material Science Company will include DuPont’s Performance Materials segment along with Dow’s Performance Plastics, Performance Materials and Chemicals, Infrastructure Solutions and Consumer Solutions. These businesses include the companies’ coatings-related unit, such as Dow Polyurethanes and Dow Coating Solutions.

The Specialty Products Company will encompass DuPont’s Nutrition and Health, Industrial Biosciences, Safety and Protection and Electronics and Communication segments, as well as Dow’s Electronic Materials. The Agriculture Company will include both companies’ seed and crop protection businesses.

Dow announced in February that it planned to sell its ethylene acrylic acid copolymers and ionomers business to SK Global Chemical Co. Ltd. Dow and DuPont were the US' only suppliers of acid copolymers and ionomers, which are used in consumer product packaging and industrial applications such as metallized building panels. Seoul-based SK is a manufacturer of olefins, aromatics, performance chemicals and polymers, as well as synthetic rubber.

www.dow.com