Dow Chemical Co.
Dow Chemical Co. and DuPont are in talks to merge, creating a chemicals giant with a market value of more than $120 billion that could then break up into different businesses, people familiar with the matter said on Tuesday.
A deal, which would face regulatory approval in several countries, would allow the two US companies to rejig their assets based on their diverging fortunes. Their plastics and specialty chemical businesses have benefited from lower energy costs, while their agro-chemicals divisions have struggled to cope with weak demand for crop protection products.
Following what would be structured as a merger of equals, the combined company could split into material sciences, specialty products and agro-chemicals, the people said, cautioning that the plans have not been finalised.
Dow’s CEO Andrew Liveris and DuPont CEO Edward Breen would have the two top jobs in the combined company, one of the people said. An agreement could be reached in the coming days, that person added.
The possible merger may see cost synergies to the tune of $3 billion, CNBC claimed.
