DuPont and Dow Chemical mega-merger a game changer for auto industry

DuPont and Dow Chemical mega-merger a game changer for auto industry

DuPont and Dow Chemical recently announced that their boards of directors unanimously approved a definitive agreement under which the companies will combine in an all-stock merger of equals.

The combined company will be named DowDuPont. The parties intend to subsequently pursue a separation of DowDuPont into three independent, publicly traded companies through tax-free spin-offs. This would occur as soon as feasible, which is expected to be 18-24 months following the closing of the merger, subject to regulatory and board approval.  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 focused investments in innovation to better deliver superior solutions and choices for customers.

“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 Andrew N. Liveris, Dow’s chairman and chief executive officer. “In automotive, we are combining Dow’s fourth position on auto exteriors and in the car with DuPont’s significant presence, specifically under the hood, to become a more complete solutions provider to our customers,” he added.

DuPont provides an array of polymers, chemicals, composites and bio-based fuels for automakers and suppliers. Dow Automotive provides adhesives, foams and industrial fluids to automakers.

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