Dow and DuPont merger moves forward
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July 20, 2016
DuPont and The Dow Chemical Company have announced that stockholders at their respective special meetings held on July 20, have voted to approve all stockholder proposals necessary to complete the merger of equals transaction. According to a release from the companies, this is a key milestone in the process to merge the two companies and subsequently pursue the intended spins of three highly focused, independent companies.
The companies expect the merger transaction to close in the second half of 2016, subject to customary closing conditions, including receipt of regulatory approvals.
“The overwhelming support of Dow and DuPont stockholders to approve this historic merger transaction is a clear testament to the compelling value proposition and enhanced shareholder value that DowDuPont represents,” said Andrew Liveris, Dow’s chairman and chief executive officer. “Today is a pivotal step toward bringing together these two iconic enterprises, and to the subsequent intended separation into three leading, independent technology and innovation-based science companies that will generate significant benefits for all stakeholders.”
Ed Breen, chair and chief executive officer of DuPont, added: “We are pleased to receive such strong support from our stockholders, which represents an essential milestone in the combination of our two companies and our intention to subsequently separate into three independent companies. We are now focused on important next steps toward completing the merger transaction, including working with regulators in the appropriate jurisdictions. We are confident that this merger will create long-term, sustainable value for stockholders and superior solutions and choices for customers.”
Following the completion of the merger, DuPont and Dow expect the combined company will pursue the separation of the combined company’s agriculture business, material science business and specialty products business into three independent, publicly traded companies, subject to approval by the DowDuPont board and receipt of any required regulatory approvals.
Dow’s more than 6,000 product families are manufactured at 179 sites in 35 countries across the globe. On June 1, 2016, Dow became the 100 per cent owner of Dow Corning Corporation’s silicones business, a global company with sales of greater than $4.5 billion in 2015, 25 manufacturing sites in 9 countries and approximately 10,000 employees worldwide.
DuPont was established in 1802. It is a science company with a portfolio of products, materials and services in more than 90 countries.