The Dow Chemical Company and DuPont finalized their merger of equals effective Aug. 31, officially becoming DowDuPont with three divisions – Agriculture, Materials Science and Specialty Products – to be spun off as separate entities within 18 months.
“Today marks a significant milestone in the storied histories of our two companies,” Andrew Liveris, executive chairman of DowDuPont, stated in a Sept. 1 announcement. “We are extremely excited to complete this transformational merger and move forward to create three intended industry-leading, independent, publicly traded companies.
DowDuPont is operating as a holding company with the goal to complete the separations as quickly as possible, Liveris said.
Ed Breen, chief executive officer of DowDuPont, said closing this transaction signifies a future built on sustainable growth and innovation. “With the merger now complete, our focus is on finalizing the organizational structures that will be the foundations of these three intended strong companies and capturing the synergies to unlock value,” Breen said in the Sept. 1 announcement. “With clear focus, market visibility and more productive R&D, each intended company will be equipped to compete successfully as an industry leader.”
The Board of Directors of the new DowDuPont comprises 16 members – eight directors formerly on the DuPont Board and eight directors formerly on the Dow Board.
Three Advisory Committees have been established by the DowDuPont Board, chartered to generally oversee the establishment of each of the Agriculture, Materials Science (Dow) and Specialty Products divisions in preparation for the separations, which are expected to occur within 18 months, according to the announcement.
The intended companies are expected to include:
- An agriculture company that brings together DuPont Pioneer, DuPont Crop Protection and Dow AgroSciences to serve growers. The intended company will be headquartered in Wilmington, Delaware, with global business centers in Johnston, Iowa, and Indianapolis, Indiana.
- A materials science company, to be named Dow, that will offer chemistry and polymers solutions for customers in markets such as packaging, transportation, infrastructure and consumer care. To be headquartered in Midland, Michigan, it will consist of the businesses comprising the following current Dow operating segments: Performance Plastics, Performance Materials & Chemicals, Infrastructure Solutions and Consumer Solutions (Consumer Care and Dow Automotive Systems; Dow Electronic Materials is intended to go to the Specialty Products Company), as well as DuPont’s current Performance Materials operating segment.
- A specialty products company that will consist of DuPont Protection Solutions, Sustainable Solutions, Industrial Biosciences and Nutrition & Health, which will integrate the Health and Nutrition business from FMC pending the close of that transaction; as well as Electronic Technologies, which combines DuPont’s Electronics & Communications business with Dow’s Electronic Materials business unit. The intended specialty products company will be headquartered in Wilmington, Delaware.