This past Friday, DuPont and Dow Chemical Co. jointly announced that the companies had officially and successfully completed their planned merger to form DowDuPont, which cost approximately $130 billion.
At the close of the day on August 31st, shares of both DuPont and Dow stopped trading. From this point forward, they will now officially trade on the New York Stock Exchange under the DWDP ticker symbol.
In a statement, DowDuPont’s executive chairman stated that the merger’s true value lies in the three industry powerhouses’ intended creation that will ultimately define their respective markets. Following this merger, the two companies are expected to break apart into three different units that are publicly traded and independent. These units will include an agricultural products manufacturer, a materials science company, and a specialty components maker. The splits are expected to take approximately 18 months to finalize.
The merger between Dow and DuPont was initially announced back in December of 2015. It is also expected to slash nearly $3 billion in annual yearly costs, as well as boost annual revenue by $1 billion through other types of efficiency measures. These savings will likely occur within the span of 24 months.
Dow and DuPont are also expected to maintain their respective headquarters; however, it’s likely that other facility cuts may be expected.
The deal between the companies took about 21 months to complete and was finally signed off on in June by the Anti-Trust Division of the U.S. Department of Justice only after the companies agreed to sell certain assets. These assets included crop protection products from DuPont and ionomers and copolymers from Dow. Furthermore, the deal also required signing off on other regulators located throughout the world, which includes Europe.
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