Dow Chemical Co. (NYSE:DOW) and DuPont (NYSE:DFT) have announced the structure of the global agriculture company the two chemical giants intend to create.
The agriculture company, to be headquartered in Wilmington and to feature DuPont in its name, is one of three independent, publicly traded companies to be created following the planned merger of DowDuPont and subsequent division of the combined company.
The companies will create a material-science company called Dow based in Midland, Michigan.
The third company, a specialty products company, also will be headquartered in Wilmington.
Officials in December announced Dow and DuPont would merge in a "historic transaction." At the same time, Dow announced it would fully acquire its joint venture with Corning Inc., Dow Corning Corp., based in Bay County, Michigan.
The result will be a new combined company with a market capitalization of approximately $130 billion called DowDuPont. The transaction is expected to close in the second half of 2016.
Prior to the intended separation into three independent companies, DowDuPont will be headquartered in both Midland and Wilmington, according to officials.
The agriculture company's corporate headquarters in Wilmington will include the office of the CEO and key corporate support functions, according to a Dow news release.
Sites in Johnston, Iowa, and Indianapolis, Indiana, are to serve as global business centers for the agriculture company, with leadership of business lines, business support functions, research and development, global supply chain, and sales and marketing capabilities concentrated in the two Midwest locations, the release states.
The agriculture company was specifically structured to "ensure the cost discipline and efficiency necessary to achieve the previously stated $1.3 billion in synergies, while establishing the strongest foundation possible for sustainable growth over the long term," the release states.
Andrew N. Liveris, chairman and chief executive officer of Dow, in a statement said, "The proposed combination of Dow's and DuPont's agricultural businesses will create a U.S.-based global leader with the scale and breadth necessary to deliver greater value and choice for growers worldwide and compete against the largest global competitors."