The mega-merger of global material giants Dow Chemical and DuPont is finally done. The chemicals makers officially completed their deal Thursday, becoming DowDuPont after first announcing their betrothal in December 2015. The highly complex deal, valued at about $62 billion as of earlier this summer, sets the stage for the new company to break into three parts as it originally announced.
DowDuPont said that within 18 months it plans to split up into an agricultural products manufacturer, a materials science company and a specialty components maker.
“While our collective heritage and strength are impressive, the true value of this merger lies in the intended creation of three industry powerhouses that will define their markets and drive growth for the benefit of all stakeholders,” Liveris said Friday in a statement. “Our teams have been working for more than a year on integration planning, and — as of today — we will hit the ground running on executing those plans with an intention to complete the separations as quickly as possible.”
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The combined company also plans to slash $3 billion in yearly costs and expects to bolster its revenue by $1 billion annually through other efficiency measures, which typically includes benefits like combined purchasing power.
Those savings are expected to occur within 24 months. Midland, Mich.-based Dow and Wilmington, Del.-based DuPont are expected to maintain their respective headquarters, but other facility cuts are possible.
The new company will begin trading Friday under the stock symbol DWDP.
Dow Chemical CEO Andrew Liveris was named executive chairman of the new company
DuPont CEO Ed Breen becomes CEO of DowDuPont.
The combined company’s board gets eight directors apiece for Dow and DuPont.
The deal took about 21 months to complete in part because of the complex regulatory review process it underwent.
The U.S. Department of Justice’s Anti-Trust Division signed off on the deal in June after the companies agreed to sell certain assets, including DuPont crop protection products and Dow copolymers and ionomers.
The deal also required the sign-off of other regulators throughout the world, including in Europe.