DuPont Finalizes Merger With Dow

DuPont Finalizes Merger With Dow.

Philly (PA) (8/31, DiStefano) reports that “Wilmington-based DuPont Co. and Dow Chemical Co. of Midland, Mich. – rival developers of plastics, pesticides, explosives, and other useful and dangerous-to-make materials – combine Thursday into one big global corporation, DowDuPont.” The article describes the merger as “a temporary marriage of convenience, with a goal of tax and cost savings, faster product development and sales, higher profits and shareholder payouts – and then a planned breakup, into at least three independent companies, over the next 18 months.” Philly writes that “Dow contributes two-thirds of the combined $77 billion in yearly sales, and more than half of the 100,000 employees and $150 billion in market value, but the companies call this a ‘merger of equals,’ with eight directors from each side on the combined board,” a process that “allows the bosses to do their spin-offs without paying income tax on sales proceeds – ‘very, very tax-efficient and one of the reasons we are doing it this way,’ as DuPont chief executive Edward Breen told shareholders when he announced the deal in December 2015.”  Read More >>