DowDuPont alters its post-merger plans
the merger between Dow and DuPont was announced in Dec. 2015, the plan was to break up the new company into three spinoffs: material sciences, agriculture and specialty chemicals. However, due to growing pressure from activist investors, the companies had a relook at certain aspects of the spinoffs.
According to reports, DowDuPont will now move several businesses from the material sciences division to the specialty-chemicals company that together account for $8 billion in sales. The businesses included in the move include water purification and automotive systems.
Dow Corning, a silicon technology company which was fully acquired by Dow last year, will also be broken up into and separated between the materials and specialty chemicals divisions.
Plans for the $14 billion agriculture company have not been altered.
The decision to make the changes comes after a consulting firm finished a four-month review of the deal, which included talks with 25 of the company’s biggest shareholders.