The result of this massive move has a name: DowDuPont. Dow Chemical Company and DuPont, two of the largest chemical companies in the world, decided to merge together under one name on Friday 11th 2015.
Even though plastic businesses are thriving because of low natural-gas prices, the falling demand for farm chemicals due to falling crop prices and a strong dollar meant that these two companies were looking for ways to improve their bottom line. This is one of the main reasons for the merger.
Agriculture, material science and specialty products will be DowDuPont’s main focusses. This giant intends to subsequently spin off into three independent, publicly traded companies within 18-24 months in order to strengthen growth and development of each of these areas.
The current CEOs, Ed Breen of DuPont and Andrew Liveris of Dow, will be involved as Breen becomes CEO of DowDuPont and Liveris is named Executive Chairman.
Shareholders from both companies will get shares in the new DowDuPont. Each of them shall receive the same amount of shares as they currently hold.
Sources:
http://uk.businessinsider.com/dupont-dow-chemical-merging-2015-12?r=US&IR=T
http://www.dowdupontunlockingvalue.com/news/dupont-and-dow-to-combine-in-merger-of-equals
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