On December 11, 2015, Dow Chemical Co. and DuPont Co. of the United States announced an equal merger agreement, and the combined company will be named Dow DuPont. Under the terms of the transaction, DuPont shareholders will receive 1.282 shares of Dow DuPont stock per share, and Dow shareholders will receive 1 Dow DuPont stock per share. Existing shareholders of both companies will each own approximately half of the combined company. Dow Chemical CEO Andrew Liveris will serve as chairman of the combined company, and DuPont CEO Ed Breen will serve as CEO of the new company.
Comment: Dow and DuPont are by far the largest mergers in the chemical industry. After the merger of the two most legendary American brands, the size of the new company will rank second in the world in this field, behind BASF SE, and surpass Monsanto Co. to become the world's largest seed and pesticide the company. According to the stock price on the 11th, the market value of the two companies is 61.7 billion and 61.84 billion US dollars respectively. After the integration of the two companies in the future, the market value of the new company will reach 120 billion US dollars or 130 billion US dollars. The merger is due to the overall weakening of the prices of chemicals and agricultural products. After the merger, the merger may play a positive role in improving corporate profits. However, the merger will face strict antitrust review, and the seed and agrochemical businesses of the two companies' business overlap may be the focus of the review.
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