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from the better-living-through-chemicals dept.
Dow Chemical Company and DuPont have agreed to merge into an entity named DowDuPont, before splitting into three distinct companies organized by market segment:
The two largest chemical companies in America will become one entity named DowDuPont, as Dow Chemical and DuPont say they're joining in a "merger of equals." The new company will have a market capitalization of around $130 billion. After the merger, the resulting behemoth would be split into what Dow Chairman and CEO Andrew Liveris calls "three powerful new companies," with a combined revenue of around $83 billion.
Now that the two companies' boards of directors have agreed to terms, their shareholders will also need to affirm the merger. Terms of the agreement state that Dow shareholders will get 1 share of the new enterprise for each Dow share they own, while DuPont shareholders will get 1.28 shares. They will own about 50 percent of the new enterprise.
The massive deal also will need the approval of federal regulators. The deal is expected to close in the second half of 2016, with the segmentation taking place up to two years later. The three corporations will have distinct identities, according to a news release announcing the merger. Here's a list of relevant quotes, along with the projected revenue for each proposed company:
- Agriculture: "Leading global pure-play agriculture company that unites DuPont's and Dow's seed and crop protection businesses." Revenue: $19 billion.
- Material Science: "A pure-play industrial leader, consisting of DuPont's Performance Materials segment, as well as Dow's Performance Plastics, Performance Materials and Chemicals, Infrastructure Solutions, and Consumer Solutions ... operating segments." Revenue: $51 billion.
- Specialty Products: "The businesses will include DuPont's Nutrition & Health, Industrial Biosciences, Safety & Protection and Electronics & Communications, as well as the Dow Electronic Materials business." Revenue: $13 billion.
The companies hope to save $3 billion during the merger period and DuPont already plans to cut around 10% of staff. Dow will also purchase glassmaker Corning's 50% stake in the Dow Corning joint venture. Reuters reports that the merger may spur other deals, such as another attempt by Monsanto to purchase Syngenta. We've had a lot of merger news lately but this one will still rank among the twenty biggest ever.
How about some Teflon to cleanse this news from your mind?
(Score: 5, Interesting) by edIII on Friday December 11 2015, @11:46PM
At what point we will start to acknowledge that DuPont has actually done more damage to humanity than Hitler? That's not Godwin folks, I actually believe that the effects of their toxic chemicals, complete and total disregard to worker safety and life in general, and numerous and repeated attempts to cover up the truth has done more damage to the world than the Nazi's did in WWII. The medical fallout since then has probably killed many times the number of the people involved in the Holocaust via cancer and horrific endings caused by toxic chemicals. Those that didn't die from that, died from violence induced all that lead exposure for the nearly 3 decades it could have been stopped.... if it weren't for DuPont executives.
We even sit here today with DuPont executives guilty of chemically torturing their workers (some they knew were pregnant), and in what can only be described as "serial killer like" mentality in their known torturing of a poor farm family over six decades. We have them on record openly stating that it would be a better idea, more in service to the shareholder, to continue torturing that poor family until they were caught.
DuPont is not needed, their executives can DIAF, and we will not be worse off. All of those engineers coming up with new materials can easily be working for other smaller corporations that might actually not be benefiting from such horrific regulatory and political capture.
Instead, we are considering giving the men and women in charge of both those companies even more power than ever. Yes, we've yet to ever receive justice either.
DuPont: Too Big For Justice
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