M&A´s huge deals: Dow Chemical and DuPont: $130 Billion

This blog is in the Top 25 M&A blogs worldwide according to Feedspot

Dow Chemical and DuPont: $130 Billion

Date Announced: December 11, 2015
Date Completed: August 31, 2017
Deal Type: Merger of Equals
Industry: Chemicals
Strategic Rationale:
- The merger between Dow Chemical and DuPont aimed to create a chemical giant capable of leveraging complementary strengths across various segments. The deal was a consolidation and portfolio extension, enabling both companies to streamline their product offerings and focus on high-growth areas.
- Post-merger, the combined entity, DowDuPont, planned to split into three separate, publicly traded companies focused on distinct markets: agriculture (Corteva), materials science (Dow), and specialty products (DuPont).
Financial Details:
- The deal was structured as an all-stock transaction valued at approximately $130 billion.
Impact:
- The merger created significant value for shareholders through cost synergies estimated at $3 billion and potential growth synergies of $1 billion. The breakup into three companies aimed to unlock greater shareholder value by allowing each entity to focus on its core business.