Dow and DuPont Chemical Announce $130 Billion Merger

Another big merger has been announced. Chemical giants DuPont and The Dow Chemical Company have agreed to combine. The all-stock merger has been valued at $130 billion. The move is expected to create cost and tax savings. The move pleased activist investors. It could lead to more consolidation. It could also get some attention from regulators.

Wells Fargo analyst Frank Mitsch described the merger as he “deal of three centuries.” The merger will combine two of America’s largest and oldest chemical companies. DuPont is 213 years old, and Dow is 118. The stock prices of both companies fell on Friday after soaring earlier in the week based on speculation about the merger.

The two companies announced that the merged business will be split into three companies. Andrew Liveris, the CEO of Dow, will take the role of executive chairman in the new combined company, assuming that regulators do not stop the merger.

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