 "Dow's Headquarters in Midland, Michigan (USA)")
Dow Chemical and DuPont – the two US-based chemical manufacturers – are reportedly holding merger talks, which if materialised would lead to a creation of $ 120 billion chemical behemoth, according to a report in The Wall Street Journal (WSJ). The merger would combine two top suppliers of plastics & polymers, industrial chemicals and crop protection chemicals.
The merger of two of America’s oldest companies, with each having a market capitalisation of about $60 billion, is likely to be followed by a three-way breakup of the combined company, added the report.
Both companies have been restructuring their businesses for last few years to focus on fast-growing business units and exiting the commodity, low-margin products
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As a part of restructuring exercise, DuPont has exited performance paints and coatings, including the business that invented Teflon nonstick pan coating, said the WSJ report.
On the other hand, Dow sold off products such as chlorine and the epoxy used in everything from space travel to Ziploc bags. In fact, in November this year, Dow also announced that it was exploring options for its agriculture division, which recorded sales of $7.3 billion in 2014.
