Historic Merger of Dow Chemical and DuPont Approved by Shareholders

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Shareholders of Dow Chemical Co. (NYSE:DOW) and DuPont Co. (NYSE: DD) agreed on Wednesday the historic merger of the two company, which was announced last year.

The merger of the two chemical makers, an all-stock deal worth $59 billion, was declared on Dec 11, 2015. After the merger, the combined company was named DowDuPont Inc. Ed Breen, the previous Chairman and Chief Executive Officer of DuPont, would be the CEO of new company, and Andrew Liveris, the Chairman and CEO of Dow Chemical, would be the Chairman of DowDupont Inc. By the end of 2018, the combined company will be spilt into three public-traded entities, two of which will be located in Wilmington. The new entities will focus on agriculture, specialty products and materials sciences.

Before the announcement of the deal, both companies took measures to cut around $3 billion from the budget of combined company. Dow Chemical would decrease 2,500 jobs and shut down some of its plants. DuPont also fired thousands of workers worldwide.

The companies said that majorities of the shareholders in both companies approved the equal merger, and the transaction is to close in the second half of 2016, depending on the approval of regulators.

Being approved by the shareholders is only the first step to the combination, and the next step is to win approvals from regulators in all the markets, including the United States, Asian countries, and European Union, where the new company’s products will be sold. Currently, the U.S. Justice Department had already issued the second request for the information related to the merger in February; in May, both companies informed China’s competition agency of the transaction and in June, the companies filed with European Commission.

“Today is a pivotal step toward bringing together these two iconic enterprises, and to the subsequent intended separation into three leading, independent technology and innovation-based science companies that will generate significant benefits for all stakeholders,” said Andrew Liveris.

“We are pleased to receive such strong support from our stockholders, which represents an essential milestone in the combination of our two companies and our intention to subsequently separate into three independent companies,” said Ed Breen. “We are confident that this merger will create long-term, sustainable value for stockholders and superior solutions and choices for customers.”

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