Dow, DuPont Merger Completed

Dow Chemical Co. and DuPont Co. today closed the $130 billion merger the companies announced in December 2015.

The merged operations temporarily will be called DowDuPont. Andrew Liveris (formerly Dow’s chairman and CEO) will be the new company’s executive chairman. Former DuPont CEO Edward Breen assumes the same position at DowDuPont. 

As previously planned, the intent is to split DowDuPont into three publicly traded companies within 18 months with their own capital structure and products. The largest, Material Science, will integrate the former performance materials operating units of both partners. It will be based in Midland, Mich., retain Dow’s name and is expected to generate annual sales of $51 billion.

The other two units, Agriculture ($19 billion) and Specialty Products ($13 billion), will be headquartered in Wilmington, Del., and operate under the DuPont name. Agriculture will integrate the partners’ seed and crop protection businesses; Specialty Products combines Dow’s electronics materials unit and DuPont’s nutrition and health, industrial biosciences, safety and protection, and electronics and communications businesses.

The partners expect the merger to lead to $1 billion in growth in coming years. They also are targeting a combined $3 billion in cost savings, which will be achieved partly through head count reductions.

The U.S. Dept. of Justice's Anti-Trust Division signed off on the deal in June after the companies agreed to sell certain assets, including DuPont’s crop protection products and Dow’s copolymers and ionomers.