Focus on agriculture, material science, specialty products

Dupont, Dow to merge

Andrew Liveris, chairman and chief executive officer of Dow

The companies will include a leading global pure-play agriculture company; a leading global pure-play material science company; and a leading technology and innovation-driven specialty products company. Each of the businesses will have clear focus, an appropriate capital structure, a distinct and compelling investment thesis, scale advantages, and focussed investments in innovation to better deliver superior solutions and choices for customers.

The transaction is expected to result in run-rate cost synergies of approximately US$ 3 billion, which are projected to create approximately US$ 30 billion of market value. Approximately US$ 1 billion in growth synergies are also expected to be achieved. Andrew Liveris will be named executive chairman and Edward Breen will be named CEO of the combined company; advisory committees will be established for each business; Dow and DuPont shareholders will each own approximately 50% of the combined company, on a fully diluted basis, excluding preferred shares.

“This transaction is a game-changer for our industry and reflects the culmination of a vision we have had for more than a decade to bring together these two powerful innovation and material science leaders,” said Liveris, Dow’s chairman and chief executive officer. “Over the last decade our entire industry has experienced tectonic shifts as an evolving world presented complex challenges and opportunities – requiring each company to exercise foresight, agility and focus on execution. This transaction is a major accelerator in Dow’s ongoing transformation, and through this we are creating significant value and three powerful new companies. This merger of equals significantly enhances the growth profile for both companies, while driving value for all of our shareholders and our customers.”

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