MOSCOW (MRC) -- Dow Chemical and DuPont are expected to announce a merger by Thursday, in a deal that would be one of the biggest in the best-ever year for mergers and acquisitions, as per The Wall Street Journal.
Dow’s Chief Executive Andrew Liveris is expected to be executive chairman of the new company, with DuPont CEO Edward Breen keeping that title.
Terms of the deal couldn’t be learned, but some of the people said it would be billed as a merger of equals, meaning there wouldn’t be a big premium for either set of shareholders.
Should it come to fruition, a combination of the companies, each more than a century old, would be one of the biggest in a year marked by big deals.
The two companies have looked to reshape their businesses to shed low-margin assets, made from oil and petrochemicals, in favor of higher-margin specialty products. DuPont has exited performance paints and coatings, including the business that invented Teflon nonstick pan coating. Dow, meanwhile, has gotten out of selling materials like chlorine and the epoxy used in everything from space travel to Ziploc bags.
In March, Dow said it would spin off a significant portion of its chlorine business to chemicals maker Olin Corp. And last year it said it would separate more of its commodity-based chemicals business, looking to focus on higher-end specialty concoctions, in a move to create more stable earnings. Since 2009, Dow has shed businesses responsible for USD15 billion in annual revenues and Mr. Liveris has suggested the changes are big enough that the company could even drop "chemical" from its name.
DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber. In 2014, Dow had annual sales of more than USD58 billion and employed approximately 53,000 people worldwide.