MIDLAND, Mich.—After successfully navigating some treacherous waters for more than a year, Dow Chemical Co. and DuPont Co. are merging their operations, with plans to split the global chemical giant into three companies.
Wilmington, Del.-based DuPont and Midland, Mich.-headquartered Dow announced on Dec. 11 they will be combining in a merger of equals. DowDuPont—as the firm will be known—will have annual sales of around $83 billion, with a little more than $54 billion coming from Dow and a little more than $28 billion from DuPont.
The deal is expected to close in the second half of 2016.
Dow's president, chairman and CEO, Andrew Liveris, will serve as executive chairman of the new firm.
DuPont CEO and Chairman Edward Breen—who joined the company's board earlier this year and became CEO in October—will be CEO of DowDuPont.
“This will create tremendous value for our shareholders and employees,” Liveris said during a Dec. 11 conference call. “It's a tectonic shift in an industry that's been evolving for many years.”
“When I look at Dow and DuPont, I see businesses that fit together like hand and glove,” Breen added on the call. “This is the strongest possible foundation for where the industry and markets are heading.”