Dupont and Dow to merge

The boards of directors of DuPont and The Dow Chemical Company (Dow) have unanimously approved a definitive agreement under which the companies will combine in an all-stock merger of equals. The combined company will be named DowDuPont. The parties intend to subsequently pursue a separation of DowDuPont into three independent,publicly traded companies through tax-free spin-offs. This would occur as soon as feasible, which is expected to be 18 to 24 months following the closing of the merger, subject to regulatory and board approval The companies will include a leading global pure-play agriculture company; a leading global pure-play material science company; and a leading technology and innovation-driven specialty products company. Each of the businesses will have clear focus, an appropriate capital structure, a distinct and compelling investment thesis, scale advantages, and focussed investments in innovation to better deliver superior solutions and choices for customers. The transaction is expected to result in run-rate cost synergies of approximately US$ 3 billion, which are projected to create approximately US$ 30 billion of market value. Approximately US$ 1 billion in…

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