Dow-DuPont alters post-merger plans
MIDLAND, Mich.—The Dow Chemical Co. and DuPont, Wilmington, Dela., officially completed their merger on August 31, creating a new business that will divide into three independent companies: Materials Science, Specialty Products, and Agriculture. However, the company has announced that it will alter its original plans after the Board of Directors ordered a comprehensive review of the portfolio composition of the intended companies.
The board concluded that certain targeted adjustments will be made between the Materials Science and Specialty Products divisions to enhance the competitive advantages of the intended resulting companies. The changes better align these businesses with the end markets they serve, ensuring clear focus, market visibility, targeted innovation, and stronger growth profiles.
As a result, the following businesses will be realigned to the Specialty Products Division from the Materials Science Division: Dow’s Automotive Systems’ adhesives and fluids platforms, Dow’s Building Solutions business, Dow’s Water and Process Solutions business, Dow’s Pharma and Food Solutions business, Dow’s Microbial Control business, DuPont’s Performance Polymers business, and several silicones-based businesses. On a forecasted 2017 basis, the businesses that will be realigned to the Specialty Products Division account for a total net sales of more than $8 billion.
Following the adjustments and realignments, the resulting companies are as follows: The Agriculture Co., Wilmington, Dela., incorporates DuPont Pioneer, DuPont Crop Protection, and Dow AgroSciences, with a portfolio that includes seeds, traits, crop chemicals, and other solutions. The Materials Science Co., Midland, Mich., will maintain the Dow brand and will comprise Performance Materials & Coatings, Industrial Intermediates & Infrastructure, and Packaging & Specialty Plastics. The Specialty Products Co., Wilmington, Dela., will consist of Electronics & Imaging, Transportation & Advanced Polymers, Safety & Construction, and Nutrition & Biosciences.