WILMINGTON, DE – Agriculture chemical giants DuPont and Dow Chemical are said to be in advanced merger talks, according to people familiar with the matter.
The Wall Street Journal reports that an announcement could be made within the next few days, but there is no guarantee that a deal will be struck.
Combined, the two companies would be worth approximately $120 billion, each representing a market capitalization of about $60 billion. The two companies would also have more than $90 billion in combined sales.
News regarding the mergers and acquisitions of big name agriculture chemical companies such as Monsanto and Syngenta has been emerging as of late. Though none of these deals have yet to come to fruition, it has been frequently reported that DuPont’s new Chief Executive, Edward D. Breen, has held discussions with other executives at rival agriculture companies.
As we previously reported, DuPont and Dow’s agricultural operations combined would total about 17% control of the global market in pesticides, putting them in third place behind Syngenta and Bayer, according to Morgan Stanley.
The Wall Street Journal also reports that if the merger between DuPont and Dow were to be approved, it would be followed by a three-way breakup of the combined company, splitting into agrochemicals, material sciences, and specialty products. No other details about the terms of the deal have been announced, however.
The deal has been described as a “merger of equals,” meaning that there wouldn’t be a big premium for either set of shareholders, the Wall Street Journal said.
According to Reuters, Dow shares closed up 12 percent to a record high of $56.97. DuPont saw a similar boost in its shares, increasing 12 percent to $74.49.
For now, we will have to continue to wait and see if this potential merger becomes a reality. For more on this story as it develops, stay tuned to AndNowUKnow.
