Plastic raw materials events, 150 billion U.S. dollars "marriage" Dow DuPont officially merged, affecting the global chemical industry, plastic raw materials market
Click： Time：2017-05-20 11:25:56
DowDuPont (NYSE: DWDP) announced on September 1, 2017, that on August 31, 2017, The Dow Chemical Company (Dow) and The DuPont Company (DuPont) successfully completed a merger of equals. The combined entity is a holding company under the name "DowDuPont?" The company has three major business units: agriculture, materials science, and specialty products, and the spin-off will begin within 18 months. This is undoubtedly the industry's big news, a big earthquake, the plastic raw materials chemical industry, a big merger, a big cooperation kicked off.
First of all, we were to first understand the 2 companies with a long history:
DuPont was founded in 1802, headquartered in Wilmington, Delaware, nearly 46,000 employees. Its products include: electronic materials, energy and utilities, mining, food and beverages, engineering plastic materials, construction, automotive (love temperature anhydrous coolant), shipping, agriculture, packaging and printing technology, health care and sanitation.
Dow Chemical was founded in 1897 and is headquartered in Midland, Michigan, with nearly 56,000 employees. The business structure includes: Performance Products, High-Tech Materials (Electronic and Specialty Materials, Coatings and Infrastructure), Basic Materials (Basic Plastic Raw Materials, Basic Chemicals, Hydrocarbons and Energy), and Healthcare and Agri-Tech.
Second, the new company portfolio, the new company will be formed with dual headquarters, located in Michigan and Delaware. The combined company will have 16 directors, eight each from Dow Chemical and DuPont. Andrew Liveris, President and CEO of Dow Chemical, will serve as DowDuPont's first Executive Chairman, and Ed Breen, President and CEO of DuPont, will serve as DowDuPont's Chief Executive Officer.
In the future, DowDuPont expects to realize greater value for all stakeholders. With the highly complementary product portfolios of Dow and DuPont, three companies will be formed upon completion of the merger transaction. By integrating the complementary strengths of Dow and DuPont, each of the planned companies will be able to respond more quickly and efficiently to rapidly changing market conditions with innovative products and greater choice. Customers will benefit from superior solutions and a broader product line.
The DowDuPont Board of Directors has established three advisory committees specifically charged with leading the formation of each of the three business units, Agriculture, Materials Science (Dow), and Specialty Products, in preparation for the spin-off. In addition, each advisory committee will develop a capital structure and appoint the future chief executive officer and leadership team of their respective planned companies in accordance with the guiding principles of the Articles of Agreement.
Dow DuPont after 21 months, finally settled, completed the merger of equals, become the global market value of the chemical giants, under the premise of complementary resources, the two companies will utilize their own strengths to develop more innovative products and solutions. In recent years, the acquisition of chemical giants is common, such as Bayer's acquisition of Monsanto, due to the European Union to intervene in the investigation slowed down the process. Chinese companies are also gradually stepping out of the country and going international, such as Sinopec's acquisition of Syngenta, which is also highly complementary and took two years to complete.
