Chemical companies Dow Chemical and DuPont have announced that they are to combine in an all-stock merger of equals.

The new combined company will be called DowDuPont.

The parties intend to subsequently pursue a separation of DowDuPont into three independent, publicly traded companies through tax‐free spin‐offs.

This would occur as soon as feasible, a statement from the companies stated, which is expected to be 18‐24 months following the closing of the merger, subject to regulatory and board approval.

The companies will include a leading global pure‐play Agriculture company; a leading global pure‐play
Material Science company; and a leading technology and innovation‐driven Specialty Products company, a statement said.

Andrew N. Liveris, Dow’s Chairman and Chief Executive Officer has said that the transaction is a game‐changer for the industry.

He also said that it reflects the culmination of a vision Dow and DuPont have had for more than a decade to bring together these two powerful innovation and material science leaders.

“Over the last decade our entire industry has experienced tectonic shifts as an evolving world presented complex challenges and opportunities – requiring each company to exercise foresight, agility and focus on execution.

This transaction is a major accelerator in Dow’s ongoing transformation, and through this we are creating significant value and three powerful new companies.

“This merger of equals significantly enhances the growth profile for both companies, while driving value for all of our shareholders and our customers,” he said.

Upon closing of the transaction, the combined company would be named DowDuPont and have a combined market capitalization of approximately $130 billion at announcement.