DuPont and Dow announced this morning a merger of the two companies to become DowDuPont. The deal will need regulatory approval and is expected to become final in the second half of 2016, according to a DuPont media release. Within 18 to 24 months, the combined corporation will separate into three publicly-traded companies–Agriculture, Material Science and Specialty Products. The DuPont Sabine River Works, which has been in Orange for 70 years, makes plastic products. Last year, the plant announced a $100 million improvement for ethylene copolymers. DuPont regional spokesman Aaron Woods said the plant has about 1,500 employees and contractors.
The DuPont media release said the merger has been approved by the board of directors of both corporations and is considered a combination of equals. The new DowDuPont will be the world’s second-largest chemical company next to the German BASF. The combined value of DuPont and Dow is set at $130 billion.
Current holders of DuPont stock will have an exchange rate of 1.282 shares of the new stock for each DuPont share. Dow shareholders will get 1 share for 1 share of the new stock.
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