Mergers and acquisitions
Dow Chemical, DuPont announce $130 billion merger plan
Early Friday, Dow Chemical Co. and DuPoint Co. — two of the oldest companies in the U.S. — announced plans to merge, creating a company valued at about $130 billion. The company, to be called DowDuPont, would then be split into three companies, respectively focused on agricultural products (pesticides and seed), material science (plastics), and specialty products. The merger is being sold as a partnership of equals, with shareholders of each chemical giant holding 50 percent of the shares of the combined company.
Dow CEO Andrew Liveris will be executive chairman, while DuPoint CEO Edward Preen, a turnaround specialist who took the company's helm just months ago, will be chief executive. Regulators and each company's board have to approve the merger, and if they do, the companies say the deal will be completed by the second half of 2016. The proposed merger is one of the largest in what's already a record-breaking year for takeovers.