DuPont and Dow merger confirmed

DuPont and The Dow Chemical Company have entered into an agreement to merge, according to an official statement. The boards of directors of both companies 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 merger will also result in the creation of three independent, publicly traded companies through tax-free spin-offs: agriculture, material science and specialty products. Each of the businesses will have clear direction, an appropriate capital structure , and focused investments in innovation to deliver solutions and choices for customers, according to the announcement.

 

Andrew N. Liveris will be named Executive Chairman and Edward D. Breen will be named CEO of combined company; Advisory Committees will be established for each business. Dow and DuPont shareholders will each own approximately 50 percent of the combined company, on a fully diluted basis, excluding preferred shares

 

The merger transaction is expected to close in the second half of 2016, subject to customary closing conditions, including regulatory approvals, and approval by both Dow and DuPont shareholders. The subsequent separation of DowDuPont is expected to occur 18-24 months following the closing of the merger.