Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • ITEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
October 25, 2016 02:00 AM

Dow, DuPont merger may be delayed to 2017

Jack Kaskey
Bloomberg News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    MIDLAND, Mich.—Dow Chemical Co.'s CEO said the $59 billion merger with DuPont Co. may be delayed until February from a planned closing late this year, as European antitrust officials take more time to consider potential competition issues in pesticides and crop seeds.

    Regulators' greatest concern is agriculture, Dow CEO Andrew Liveris said Monday in an interview with Bloomberg's John Micklethwait in New York.

    “One of the strongest lobbies in the world out there is the farm lobby, and in Europe, the agricultural sector is very, very critical to them, somewhat protected,” the executive said.

    Shareholders in the two largest U.S. chemical companies approved the 50-50 merger in June and Howard Ungerleider, Dow chief financial officer, said in July that the merger was on track to close by the end of the year. The European Commission this month delayed its decision deadline until Feb. 6 as it sought additional information about the transaction. Liveris said the value created by the deal made the wait worthwhile.

    “That's worth a few months of delay,” he said in the interview.

    DuPont CEO Ed Breen on Tuesday said he now expects the deal to close by the end of March.

    “We continue to work constructively with regulators in key jurisdictions to close the merger as soon as possible,” Breen said in the company's third-quarter earnings statement. “In the event that regulators in those jurisdictions use their full allotted time, closing would be expected to occur in the first quarter of 2017.”

    Asset sales

    Liveris wouldn't say whether the companies planned to sell assets to help win approval. Bloomberg reported this month that Dow is seeking a buyer for its copolymers business to ease regulators' concerns. Likewise, DuPont is planning to sell an herbicides business, Bloomberg also reported.

    Dow shares have gained 5.4 percent this year, narrowly edging the 5.3 percent increase in the Standard & Poor's 500 Index. Like the S&P, DuPont has advanced 5.3 percent.

    Liveris has spent four decades at Dow, including more than a decade as chairman and CEO. He will become chairman of the combined company, DowDuPont Inc. and plans to step down after the deal goes through. Breen will serve as CEO.

    The plan is to divide the merged company into three separate publicly traded entities, including an agriculture operation that would be larger than market leaders Monsanto Co. and Syngenta A.G. Those two companies forged combinations of their own this year, with Monsanto agreeing to be acquired by Bayer A.G. and Syngenta striking a deal to be bought by China National Chemical Corp.

    DuPont earnings

    DuPont boosted its 2016 earnings outlook amid global cost cutting and increased sales volumes. Adjusted earnings for this year will reach $3.25 a share, compared with a prior range of $3.15 to $3.20, the Wilmington, Delaware-based company said in a statement. Analysts surveyed by Bloomberg were expecting $3.19 on average.

    Breen is eliminating 10 percent of DuPont's work force as part of a plan to reduce annual expenses by $700 million. The savings, combined with a 3 percent higher sales volume, helped widen pretax profit margins in DuPont's six business segments by an average of 3.5 percentage points, with gains realized in each one.

    Dow will report financial results Oct. 27.

    Liveris, a native of Australia, didn't specify what he plans to do after retiring, but noted a keen interest in politics. He said the U.S. is not doing a good job selecting candidates and that business leaders with worldly experience could be valuable in the political arena.

    “People like me should consider going and serving after they leave jobs like these,” said Liveris, while saying he didn't necessarily plan to run for any office.

    Related Articles
    Dow-DuPont shareholders approve $59 billion merger
    Dow's sales decline, income increases for second quarter
    EU to probe Dow-DuPont merger
    European Commission to further investigate Dow-DuPont merger
    Dow-DuPont merger risks delay as EU seeks missing deal info
    Dow awarded for Betaforce product
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Wacky World of Rubber: The true story behind the rubber match
    2
    Parker-Hannifin to sell Avon, Ohio-based unit for $440 million
    3
    Wacker aims to increase global silicone capacity
    4
    Watch: Michelin launches major ‘Motion for Life' ad campaign
    5
    Updated: Conti fined for compound mixer explosion, shears accident
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • ITEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION