Dow and DuPont expect the merger of the two companies to close in August 2017, according to a joint statement from both companies.

The intended spin-offs of the companies are expected to occur within 18 months of closing.

The boards of directors of both companies reiterate their support of the merger agreement. In addition, as announced, both boards support a comprehensive portfolio review for DowDuPont, which is intended to assess current business facts and leverage the knowledge gained over the past year and a half to capture any material value-enhancing opportunities in preparation for the intended creation of three industry-leading companies.

Review

The boards have jointly commenced the review and have engaged McKinsey & Co to assist the companies in this assessment.

The lead independent directors of each company are working together to oversee the process. The DowDuPont Board is expected to review the results soon after the merger closes.

Lead Director of Dow, Jeff Fettig, said that the management teams and directors of both companies are in regular dialogue with our shareholders, and we have undertaken significant preparation work in advance of the close.

“As a collective board we are committed to delivering maximum, long-term shareholder value by ensuring that each of the intended companies will have clear focus, an appropriate capital structure, a distinct and compelling investment thesis, scale advantages, and focused investments in innovation to better deliver superior solutions and choices for customers.”

Maximising potential

Also commenting on the announcement was Alexander (Sandy) Cutler, lead director of DuPont.

“Dow and DuPont leadership are committed to maximising the value creation potential of the merger and anticipated spins.

“Our review will provide an in-depth look at the portfolio mix and alignment across divisions to ensure we capitalise on all value-enhancing opportunities.

“The output of the review will be an immediate focus for the DowDuPont board following merger close.

“If the results of our review demonstrate there is net greater long-term value creation to be realised through a change in the portfolio, it will be pursued."

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