December 9, 2015

DuPont and Dow in talks for potential merger

Advanced talks for a possible merger between Dow Chemical Co. and DuPont Co. had started, in the midst of a recent escalation of relevant activities in the agriculture sector, the Wall Street Journal reports.

The merger could be announced in the coming days, said unnamed sources familiar with the matter. Based on usual actions pertaining to activities of such nature, the development could lead to a three-way breakup of the joint company, and install Andrew Liveris, the chief executive of Dow, as executive chairman, and Edward Breen, the chief executive of DuPont, retaining his current appointment.   

However, the deal - between two monoliths in their fields with a market capitalisation of about US$60 billion each - has not been inked and talks may fail to reach a successful outcome, the sources warned. 

Otherwise, this year will likely witness one of the biggest merger ever realised. Agreement from both sides will eventuate a potential megacorporation with more than US$90 billion in total sales and strong positions in various sectors including agriculture and industrial chemicals.