Advertise Here [468 W x 60 H pixels]
Newsline-National | January 2016

Mega-Merger: DowDuPont in the making

DuPont and The Dow Chemical Company have announced that their BODs 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 18-24 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 focused investments in innovation to better deliver superior solutions and choices for customers.

“This transaction is a game-changer for our industry and reflects the culmination of a vision we have had for more than a decade to bring together these two powerful innovation and material science leaders,” said Andrew N Liveris, Dow’s chairman and chief executive officer. “Over the last decade our entire industry has experienced tectonic shifts as an evolving world presented complex challenges and opportunities – requiring each company to exercise foresight, agility and focus on execution. This transaction is a major accelerator in Dow’s ongoing transformation, and through this we are creating significant value and three powerful new companies. This merger of equals significantly enhances the growth profile for both companies, while driving value for all of our shareholders and our customers.”

“This is an extraordinary opportunity to deliver long-term, sustainable shareholder value through the combination of two highly complementary global leaders and the creation of three strong, focused, industry-leading businesses. Each of these businesses will be able to allocate capital more effectively, apply its powerful innovation more productively, and extend its value-added products and solutions to more customers worldwide,” said Edward D Breen, chairman and chief executive officer of DuPont. “For DuPont, this is a definitive leap forward on our path to higher growth and higher value. This merger of equals will create significant near-term value through substantial cost synergies and additional upside from growth synergies. Longer term, the three-way split we intend to pursue is expected to unlock even greater value for shareholders and customers and more opportunity for employees as each business will be a leader in attractive segments where global challenges are driving demand for these businesses’ distinctive offerings.”

Upon closing of the transaction, the combined company would be named DowDuPont and have a combined market capitalisation of about $130 billion at announcement.

Post your comment
Name:  
Email:    
Comments:  
Verification Code:   Change Image


 
Advertise Here [728 W x 90 H pixels]
Aleph SRL      Alidhra Weavetech Pvt Ltd      Arvind Rub-Web Controls Ltd      Associated Autotex Ancillaries Pvt Ltd      B & R Industrial Automation Pvt Ltd      Best Power Equipments India Pvt Ltd      Bharat Beams Pvt Ltd      Bharat Bijilee Ltd      Bhatt Bros      Biancalani Srl      Condair      Dashmesh Jacquard and Powerloom Pvt Ltd      Elgi Electric and Industries Ltd      Embee Corporation      Eppinger Tooling Asia Pvt Ltd      Excel Traders      Fadis India Pvt Ltd      Fourwents Engineering Company      Gandhi Automations Pvt Ltd      GEM Equipments (P) Ltd      Graf (Rieter India)      Groz-Beckert Asia Pvt Ltd      K.U. Sodalamuthu and Co. Pvt Ltd      Konica Electronics Enterprise      Labelmach      Lapp India Pvt Ltd      Loepfe Brothers Ltd (Masterline)      MESDAN India Pvt Ltd      Nestling Technologies      Peass Industrial Engineers Pvt Ltd      Premier Evolvics Pvt Ltd      RENMAKCH India Pvt. Ltd      Rieter India Pvt. Ltd      Savio India Ltd      Savio Texcone Pvt Ltd      SB Dye Springs India Pvt Ltd      Shakti Textile      SRE Corporation      Stella India      Stovec Industries Ltd      Thymas Electronics Pvt Ltd      Truetzschler India Pvt Ltd      Aleph SRL      Alidhra Weavetech Pvt Ltd      Arvind Rub-Web Controls Ltd      Associated Autotex Ancillaries Pvt Ltd      B & R Industrial Automation Pvt Ltd      Best Power Equipments India Pvt Ltd      Bharat Beams Pvt Ltd      Bharat Bijilee Ltd      Bhatt Bros      Biancalani Srl      Condair      Dashmesh Jacquard and Powerloom Pvt Ltd      Elgi Electric and Industries Ltd      Embee Corporation      Eppinger Tooling Asia Pvt Ltd      Excel Traders      Fadis India Pvt Ltd      Fourwents Engineering Company      Gandhi Automations Pvt Ltd      GEM Equipments (P) Ltd      Graf (Rieter India)      Groz-Beckert Asia Pvt Ltd      K.U. Sodalamuthu and Co. Pvt Ltd      Konica Electronics Enterprise      Labelmach      Lapp India Pvt Ltd      Loepfe Brothers Ltd (Masterline)      MESDAN India Pvt Ltd      Nestling Technologies      Peass Industrial Engineers Pvt Ltd      Premier Evolvics Pvt Ltd      RENMAKCH India Pvt. Ltd      Rieter India Pvt. Ltd      Savio India Ltd      Savio Texcone Pvt Ltd      SB Dye Springs India Pvt Ltd      Shakti Textile      SRE Corporation      Stella India      Stovec Industries Ltd      Thymas Electronics Pvt Ltd      Truetzschler India Pvt Ltd