War Of Agrochemical Industry Is On, Du-Pont Merges With Dow Chemicals
In one the most awaited mergers of this decade Dow-DuPont™ (NYSE:DWDP) yesterday announced the successful completion of the merger of equals between The Dow Chemical Company (“Dow”) and ‘E.I. du Pont de Nemours & Company’ (“DuPont”), which is effective from 31st August, 2017. The combined entity is operating as a holding company under the name “Dow-DuPont™” with three divisions – Agriculture, Materials Science and Specialty Products.
Shares of DuPont and Dow ceased trading at the close of the New York Stock Exchange (NYSE) on 31st August, 2017. Beginning today, Dow DuPont will start trading on the New York Stock Exchange under the stock ticker symbol “DWDP.” Pursuant to the merger agreement, Dow shareholders received a fixed exchange ratio of one share of Dow-DuPont for each Dow share, and DuPont shareholders received a fixed exchange ratio of 1.282 shares of Dow-DuPont for each DuPont share.
Andrew Liveris, executive chairman of Dow-DuPont had said, “Today marks a significant milestone in the storied histories of our two companies,” “We are extremely excited to complete this transformational merger and move forward to create three intended industry-leading, independent, publicly traded companies. While our collective heritage and strength are impressive, the true value of this merger lies in the intended creation of three industry powerhouses that will define their markets and drive growth for the benefit of all stakeholders. Our teams have been working for more than a year on integration planning, and -- as of today -- we will hit the ground running on executing those plans with an intention to complete the separations as quickly as possible.”
“For shareholders, customers and employees, closing this transaction is a definitive step toward unlocking higher value and greater opportunities through a future built on sustainable growth and innovation,” said Ed Breen, chief executive officer of Dow-DuPont. “Dow-DuPont is a launching pad for three intended strong companies that will be better positioned to reinvest in science and innovation, solve our customers’ ever-evolving challenges, and generate long-term returns for our shareholders. With the merger now complete, our focus is on finalizing the organizational structures that will be the foundations of these three intended strong companies and capturing the synergies to unlock value. With clear focus, market visibility and more productive R&D, each intended company will be equipped to compete successfully as an industry leader.”
Board of Directors of Dow-DuPont comprises 16 members – eight directors formerly on the DuPont Board and eight directors formerly on the Dow Board. There are two lead directors: Jeffrey Fettig, who previously served as the lead independent director for Dow; and Alexander Cutler, who previously served as the lead independent director for DuPont. Liveris serves as the executive chairman of the Board and Breen also serves on the Board.
Crop care federation of India (CCFI), the association of Indian crop care chemical producers is yet to give any reaction on it. This is one of the biggest mergers of this decade, post Syngenta, Chem-China deal.
