Dow and DuPont Merger Imminent

Dow Logo3Dow Chemical, and DuPont could be ready to announce a merger, according to multiple sources including CNBC, Reuters, and The Wall Street Journal.DuPont Logo

The combined company, which would likely require the businesses to break apart divisions, would require regulatory approval in several countries. According to Reuters, “the combined company could split into material sciences, specialty products and agrochemicals, the people said, cautioning that the plans have not been finalized.”

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The possible merger follows the failed $45 billion Monsanto bid for Syngenta that generated a great deal of interest earlier this year. Several companies have been exploring options as lower commodity prices have decreased demand for seed and crop protection products.

The merger could bring $3 billion in synergies, CNBC says, and the new entity would likely become three separate companies one focusing on agriculture and the others on material services and specialty products.

UPDATE: Dow and DuPont agreed on terms for the merger Dec. 11. The combined company will have a market capitalization of $130 billion, and its agriculture revenues will be $19 billion annually, according to a report by NPR.

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