The Dow Chemical Co. has merged with DuPont. Here’s a look at the new combined company and the events that led to this point.
When Dow officials announced the plans to merge with DuPont, they also laid out a post-merger plan. Here are the details they outlined:
1. Leadership: Liveris will become executive chairman of the newly formed DowDuPont Board of Directors. Breen, chairman and CEO of DuPont, will become CEO of DowDuPont. Both Liveris and Breen are to report to the board of directors. When named, the chief financial officer will report to Breen.
DowDuPont’s board will have 16 directors, consisting of eight current Dow directors and eight currrent DuPont directors.
2. Three new companies: Approximately 18 months after closing the merger, the new combined company is to separate into three independent, publicly traded companies through tax-free spin-offs.
Company officials say the three new companies will be global leaders. They will include an agriculture company with $19 billion in revenue, a material science company with $51 billion in revenue and a specialty products company with $13 billion in revenue.
Advisory committees will be established for each of the businesses. Breen is to lead the Agriculture and Specialty Products Committees. Liveris is to lead the Material Science Committee.
3. A ‘highly synergistic’ transaction: Company officials say this “highly synergistic transaction” is expected to result in run-rate cost synergies of about $3 billion, which are projected to create about $30 billion of market value. It’s also expected to result in approximately $1 billion in growth synergies.
4. What it means for shareholders: Dow and DuPont shareholders will each own approximately 50 percent of the combined company, on a fully diluted basis, excluding preferred shares, according to company officials.
5. What it means for Midland: Dow is headquartered in Midland, and DuPont is based in Wilmington, Delaware. Following the closing of the transaction, DowDuPont is to be dual-headquartered in Midland and Wilmington.
