By Jessica Domel
Multimedia Reporter
By the end of business on Thursday, Aug. 31, Dow Chemical Company and DuPont will no longer be two separate entities.
The merger of equals has been approved by regulatory agencies required and has received the clearances needed to move forward. At the close of business Thursday, shares of both companies will no longer be available for sale.
Beginning Friday, Sept. 1, shares of the newly-merged company, DowDuPont, will begin trading under the stock ticker symbol “DWDP.”
To complete the merger, the Department of Justice required the companies to sell DuPont’s Finesse herbicide and Rynaxypyr insecticides.
Dow was also asked to sell its acid copolymer and isonomers business.
The companies won’t stay a single entity for long. Within 18 months of the merger’s completion, officials say the companies will spin-off into three independent companies.
One will focus on agriculture and will combine Dow and DuPont’s seed and crop protection businesses. Its corporate headquarters will be located in Wilmington, Delaware. Global business centers will be located in Iowa and Indiana.
The agriculture-focused spin-off will continue to carry DuPont in the name, following the corporate branding and naming process.
“This efficient structure takes full advantage of the unique expertise and resources that exist in each location, enabling us to deliver the long-term opportunity for the leading global agriculture company we intend to create,” Edward D. Breen, chairman and chief executive officer of DuPont, said.
The combination of DuPont and Dow’s assets will create a U.S.-based global leader with the “scale and breadth necessary to deliver greater value and choice for growers worldwide,” Andrew N. Liveris, chairman and chief executive officer of Dow, said.
“The intended agriculture company will be highly focused, stronger, more competitive, more resilient and better equipped to deliver growth and long-term, sustainable value than either DuPont or Dow could deliver on its own. Both companies have highly respected brands in the agriculture industry, such as Pioneer and Mycogen, which we will continue to build and leverage,” Breen said. “Going forward, we will be better equipped to meet and exceed grower expectations for innovation in crop technology and agricultural services. We intend to bring a broader suite of products to the market, faster, to increase grower productivity and profitability.”
The second company will focus on material sciences, while the third will be a specialty products company.
After the companies are divided, each will be traded publicly independently.