The merger would combine two companies that sell farm products to millions of farmers around the world, and makes a variety of chemicals for consumer and industrial products ranging from electronics, cars, and household goods to building materials and safety equipment.
All shares merger calls for the two companies to merge as DowDuPont, then split into three independent public companies focus on agriculture, materials science and special products.
"Over the last decade throughout our industry has experienced a tectonic shift as the developed world presented a complex challenge and opportunity," said Dow Chairman and CEO Andrew Liveris.
Liveris will be named Chief Executive of the combined company while DuPont Chairman and CEO Edward Breen will be CEO. The company will have two headquarters in Michigan and Delaware where both companies are based at this time.
Traders gathered at the post that handles Dow Chemical on the floor of the New York Stock Exchange on Wednesday. Dow and DuPont both rose sharply following reports of the merger.
RICHARD DREW/AP
Traders gathered at the post that handles Dow Chemical on the floor of the New York Stock Exchange on Wednesday. Dow and DuPont both rose sharply following reports of the merger.
In conjunction with the merger, which is subject to regulatory approval, the two companies took a separate restructuring measures.
DuPont announced plans for restructuring the entire company to reduce the $ 700 million fee that covers employees and contractors the JOB CUTS affect about 10% of the company's workforce. It expects to record a pre-tax charge of approximately $ 780,000,000, with $ 650,000,000 from the separation of employees and costs about $ 130 million cost of the related asset and termination of the contract.
The Dow, meanwhile, says it is taking full ownership of Dow Corning, currently 50-50 joint venture between Dow Corning and. Dow said the measures, expected to close in the first half of 1999, is expected to generate more than $ 1 billion in annual revenue and will increase the additional customized product offerings within the building and construction, consumer care, and automotive markets.
The company said a merger of equals, was approved unanimously by the Board of Directors, respectively, would result in synergy costs around $ 3 billion that is projected to create about $ 30 billion in market value.
All shares merger will see the company incorporates as DowDuPont, then split into three independent public companies.
DENIS BALIBOUSE/REUTERS
All shares merger will see the company incorporates as DowDuPont, then split into three independent public companies.
Under the terms of the deal, shareholders of Dow will receive a fixed exchange ratio of one share of stock for each DowDuPont Dow, DuPont and shareholders will receive a fixed exchange ratio of 1.282 stocks on DowDuPont for any shares of DuPont. Dow and DuPont shareholders will have about 50%, respectively, of the combined company.
The proposed agricultural venture will unite the seeds and plant protection business of DuPont and Dow. The company's materials science will combine performance materials segment DuPont Dow plastics with the performance, performance materials and chemicals, solutions, infrastructure and consumer solutions unit, not including electronic materials business. Combined pro forma revenue of 2014 for the materials science of about $ 51,000,000,000.
Specialized products company will incorporate nutrition DuPont and health, biosciences industry, safety and protection, and electronics and communications segment with Dow electronic business. Combined pro forma revenues for the 2014 specialty products is about $ 13 billion.
The Board of the new company is expected to have 16 directors, which consists of eight directors of DuPont today and eight directors of the current Dow
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