Dow and DuPont are in advanced talks to merge: reports
A deal could be announced in coming days, the reports say. Together, the companies are worth nearly US$120 billion.
Driven by pressure from investors, global chemical companies Dow Chemical Co. and DuPont Co. are in talks to merge, new reports are saying.
As first reported by the Wall Street Journal on Dec. 8 – and citing unnamed people familiar with the merger – the talks are in an advanced stage, and a deal could be announced this week.
The reports – in the Wall Street Journal, Reuters, and other news agencies – also say that if a deal is finalized, the next step would be a three-way breakup of the combined company.
In addition to agricultural products, the companies also have divisions that make films, coatings, packaging technologies and other materials used in the food, pharmaceutical, industrial, and automotive sectors.
Under pressure from shareholders to slim down and focus on faster-growing units, both companies have been restructuring their businesses, in response to falling demand for farm chemicals, even as their respective plastics units have reported a rise in margins thanks to low natural gas prices.
Dow is based in Midland, Mich., and DuPont is headquartered in Wilmington, Del. Between them, the two companies are worth an estimated US$120 billion.