DowDuPont Revised its Break-Up Plan in Response to Shareholder Concerns

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On Tuesday, DowDuPont Inc. (NYSE: DWDP), a holding company formed through the merger of Dow Chemical and DuPont, said that it has revised the break-up plan in response to the shareholders’ concern about the size and focus of the new businesses.

Just like the previous plan, DowDuPont will break into three companies, one making plastics and materials, one in agricultural chemicals and seeds, and one making specialised products. After a comprehensive review, the allocation of operations between companies has been changed. Over half a dozen businesses will be allocated to specialised products group from plastics and materials company.

According to the company, the reallocated businesses are expected to contribute over $8 billion in sales and $2.4 billion in EBITDA in 2017.

“Our DowDuPont Board is fully aligned and confident that these targeted portfolio adjustments are the right actions to take and will benefit all stakeholders over the long term,” said Andrew Liveris, the executive chairman of DowDuPont. “These adjustments are fully supported by the Materials Science Advisory Committee, as they better align select businesses with the market verticals they serve.”

“The changes we are making will enhance the competitive advantages and value creation for potential of DowDuPont and ensure the intended companies have the best possible foundation to drive long-term value for all stakeholders,” Ed Breen, the CEO of DowDuPont, said in a statement.

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