Dow Chemical Co, DuPont Co agree to combine in massive deal valued at US$130 billion – FINANCIAL NEWS-ecozik.com
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Dow Chemical Co, DuPont Co agree to combine in massive deal valued at US$130 billion

Dow Chemical and Dupont have agreed to merge in an all-stock deal that Dow CEO calls a "game-changer" for the industry.

Dow Chemical Co. and DuPont Co., two historic giants of U.S. industry, will merge in a deal this is the first step inside a intend to create three new highly-focused businesses.

The merger, the largest ever in the chemicals industry, will combine products from both Dow and DuPont within the regions of agriculture, commodities chemicals and specialty chemicals to produce the brand new businesses. It comes after two years of pressure from activist investors who argued that shareholders of both companies would realize greater value when they were broken up.

Dow and DuPont will combine in an all-stock deal to produce a new company, DowDuPont, having a market capitalization of approximately US$130 billion, they said Friday inside a joint statement. Dow Chief Executive Officer Andrew Liveris, 61, will end up executive chairman. DuPont CEO Ed Breen, 59, is going to be CEO from the new company.

Investors will get one DowDuPont share for every Dow share, and 1.282 DowDuPont shares for each one of DuPont. The eventual breakup of DowDuPont into three independent, publicly traded companies through tax-free spin-offs is anticipated over 18 to 24 months following the completion of the merger.

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