Durability + Design
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

Durability + Design (D+D)


D+D News

Main News Page


US Approves $130B Dow-DuPont Merger

Monday, June 19, 2017

More items for Coatings Technology

Comment | More

U.S. regulators have given conditional approval to the pending $130 billion merger between chemical giants The Dow Chemical Company and DuPont.

The Department of Justice and Federal Trade Commission announced Thursday (June 15) that they had approved the transaction on the condition that each company make some divestitures. Dow will be required to sell its acid copolymers and ionomers business, while DuPont must divest of its Finesse and Rynaxypyr lines of pesticides. The companies expect the deal to close in August.

Divestiture Sales

Dow announced in February that it plans to sell its Ethylene Acrylic Acid copolymers and ionomers business to SK Global Chemical Co. Ltd. The DOJ says Dow and DuPont are the country’s only suppliers of acid copolymers and ionomers, which are used in consumer product packaging and industrial applications such as metalized building panels. Seoul-based SK is a manufacturer of olefins, aromatics, performance chemicals and polymers, as well as synthetic rubber.

Dow Chemical
Dow Chemical

Dow plans to sell its Ethylene Acrylic Acid copolymers and ionomers business to SK Global Chemical Co. Ltd.

In March, DuPont entered into an agreement with FMC Corporation for the sale of a portion of its Crop Protection business in an effort to gain approval for the merger with Dow. In that deal, DuPont will acquire FMC’s Health and Nutrition business and receive $1.2 billion cash from FMC in exchange for what FMC calls “a significant portion” of DuPont’s Crop Protection business.

“The remedies obtained by today’s settlement, including the divestiture of DuPont’s market-leading Finesse and Rynaxypyr crop protection products, will preserve vigorous competition in the sale of these products and benefit American farmers and consumers alike,” said Acting Assistant Attorney General Andrew Finch, of the Antitrust Division.

“We are very pleased that the DOJ has approved this transaction,” said Andrew Liveris, Dow's chairman and chief executive officer. "With today’s DOJ clearance, we have taken a significant step forward in bringing together these two iconic enterprises, and in the subsequent intended separation into three leading, independent innovation-based science companies that will generate significant benefits for all stakeholders."

Other Approvals

The Dow-DuPont merger cleared European regulators in March, contingent on largely the same divestitures: Dow’s EAA copolymers and ionomers, and a portion of DuPont’s pesticides business. The deal has also met with approval in other countries, including China and Brazil.

Breen and Liveris
DuPont

DuPont CEO Edward Breen (left) and Dow CEO Andrew Liveris (right) announced the $130 billion deal in December 2015.

According to Reuters, countries that have yet to approve the merger include Mexico and Canada.

Merger and Breakup

Announced in 2015, the merger will create one company, DowDuPont, with DuPont CEO Edward Breen serving as CEO and Dow CEO Andrew Liveris filling the role of executive chairman. The new company will, within 18 months, split into three separate companies. Each of the new companies will concentrate on one main business segment.

The Material Science Company will include DuPoint’s Performance Materials segment along with Dow’s Performance Plastics, Performance Materials and Chemicals, Infrastructure Solutions and Consumer Solutions. These businesses include the companies’ coatings-related unit, such as Dow Polyurethanes and Dow Coating Solutions.

The Specialty Products Company will encompass DuPont’s Nutrition and Health, Industrial Biosciences, Safety and Protection, and Electronics and Communication segments, as well as Dow’s Electronic Materials.

The Agriculture Company will include both companies’ seed and crop protection businesses.

   

Tagged categories: Acquisitions; Business matters; Coatings raw materials manufacturers; Dow Chemical Company; DuPont; Government; Mergers

Comment from Robert Tinker, (6/19/2017, 7:08 AM)

An abomination in the age of Trump. Soon to be over!


Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
LATICRETE International, Inc.
 
SPARTACOTE Flex PURE Clinical Plus Coatings
 
Equipped with antimicrobial technology, fast-cure systems and high-traction features. Ideal for demanding environments. Customizable colors and textures.
 

 
A&I Coatings
 
Vitreflon – the hallmark of colour stable protective coatings
 
Vitreflon two pack fluoropolymer coatings display unsurpassed colour and gloss retention making Vitreflon the coating of choice for high value infrastructure and architecture. Contact us today to find out how Vitreflon can outperform on your next project. Vitreflon distributorships available.
 

 
World of Concrete
 
WOC 2018 – Las Vegas, NV
 
Visit the WOC website for more details about the World of Concrete 2018: January 23-26; Seminars 22-26 at the Las Vegas Convention Center in Las Vegas, NV, USA.
 

 
RCI, Inc.
 
RCI Building Envelope Technology Symposium
 
November 13-14, 2017 | Orlando, Florida | Learn valuable design and repair insights from 20 leading design experts. RCI, Inc. is an AIA LU provider. Learn more.
 

 
PPG Paints
 
NEW FORMULA! PPG PAINTS™ SEAL GRIP® PRIMER
 
PPG Paints Seal Grip Interior/Exterior Acrylic Universal Primer/Sealer has been reformulated to meet your toughest interior and exterior primer requirements.
VIEW PRODUCT
 

 
Greenbuild
 
Greenbuild and ABX Together in Boston
 
Come to Boston and enjoy a 2 in 1 event! Greenbuild and ABX come together with over 700 exhibitors from the construction and design industry - register today!
 

 
Atlas Material Testing Technology
 
Helping You Put Your Products To The Test
 
  • Outdoor Accelerated Weathering
  • Laboratory Testing Services
  • Accelerated Weathering Instruments

  • www.atlas-mts.com
    atlas.info@ametek.com
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@durabilityanddesign.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 

© Copyright 2012-2017, Technology Publishing Co., All rights reserved