Dow, DuPont set $130 billion megamerger, could spark more deals

[WhiteTara]

http://www.reuters.com/article/us-dow-m-a-dupont-idUSKBN0TU1B220151211#qLWhkqd1Hs8QVAKU.97

Chemical titans DuPont and Dow Chemical Co agreed to combine in an all-stock merger valued at $130 billion in a move that pleased activist investors, would generate tax savings and trigger more consolidation while drawing scrutiny from regulators.

The "deal of three centuries," as Wells Fargo analyst Frank Mitsch dubbed it, will combine two of the biggest and oldest U.S. chemical producers in a prelude to a split into three publicly traded businesses, focusing on agriculture, materials and specialty products.

Dow and DuPont shares fell on Friday after soaring earlier in the week following reports of negotiations between the two companies.

The deal, announced on Friday, will face intense regulatory scrutiny, analysts said, especially over combining their agricultural businesses, which sell seeds and crop protection chemicals, including insecticides and pesticides.

Executives from both companies said the agrichemicals businesses have little overlap and any asset sales would likely be minor.

Potential tax savings were one reason for the complicated merger-before-breakup deal, analysts said. "They need to merge first in order for the subsequent spin offs to qualify as tax free transactions in the United States," said SunTrust Robinson Humphrey analyst James Sheehan.


Read more at Reutershttp://www.reuters.com/article/us-dow-m-a-dupont-idUSKBN0TU1B220151211#tWvRPC0LMCoYyLXu.99

[olddots]

1. the Corporate Constitution is right around the corner

because " corporations are people my friend ."

[Octafish]

4. I swear allegiance to the plugs...

I pledge allegiance to the flag
of the corporate states of America.
And to the stockholders, for which they stand,
one nation, under Mammon, socially divisible,
with liberty and justice appropriate to holdings.

[doc03]

2. Instead of merging the government should be breaking them up n/t

[WhiteTara]

3. I agree.

Something about monopolies...not that is frowned anymore.

[doc03]

5. The way things are going one company will own everything

in a few more decades.