The merger between Dow Chemical and Dupont was completed late last week, forming the company “DowDuPont”, with three divisions: agriculture, materials science and specialty products.
Shares of DuPont and Dow ceased trading at the closing of the New York Stock Exchange on August 31, 2017 and DowDuPont began trading on the New York Stock Exchange under the stock ticker symbol “DWDP.”
The merger agreement provides that Dow shareholders received a fixed exchange ratio of 1.00 share of DowDuPont for each Dow share, and DuPont shareholders received a fixed exchange ratio of 1.282 shares of DowDuPont for each DuPont share.
The transaction is expected to result in in run-rate cost synergies of approximately $ 3 billion and the potential of approximately $ 1 billion in growth synergies, according to DowDuPont. The company expects to achieve the 100% execution rate in cost synergies in the first 24 months of merger closure, “said Andrew Liveris, executive president of DowDuPont.
“This day marks an important milestone in the history of both companies. We are delighted to conclude this merger and will move towards creating three independent companies that will influence markets and drive growth for the benefit of their public. The separation and creation of these companies should occur in 18 months.
“DowDuPont is a launching pad for three intended strong companies that will be better positioned to reinvest in science and innovation, solve our customers’ ever-evolving challenges and generate long-term returns for our shareholders. With the merger conclusion 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. With clear objectives, market visibility and more productive R & D structure, each intended company will be equipped to compete successfully as an industry leader”, “said Ed Breen, chief executive officer of DowDuPont.