The specialty products firm, with about $13 billion in projected sales, will combine Dow and DuPont businesses in electronic materials. Each company has posted three straight quarters of falling revenue, spurred by the strong dollar and plummeting commodity prices.
When Benzinga asked Pultz about arbitrage opportunities, a specialty of Kellner Capital, he said the spread for this deal will likely be relatively small. The deal “was always in front of us to get done, in the right way”, Liveris told the Wall Street Journal.
The companies plan to maintain dual headquarters in Midland, Michigan, and Wilmington, Delaware, but also said they will “optimize” their physical footprint. The agrichemical company is expected to generate $19 billion through the sale of seeds and chemical insecticides to the agricultural industry.
Earlier this year, Missouri-based Monsanto, the world’s largest seed company, abandoned a $46.5 billion hostile bid for Swiss pesticide giant Syngenta.