DuPont Co and Dow chemicals have agreed to merge in a deal that has gotten many in the chemicals and agricultural sector excited and slightly intimidated. When the ink dries, the new company would be worth a combined $130 billion, the largest ever in the chemicals industry.
The two companies are large US based chemicals manufacturers looking to consolidate efforts in a bid to battle falling commodity prices. The joint company is expected to make costs savings of $3 billion, while also adding $1 billion in earnings.
Within two years of the deal concluding, DowDuPont will be split into three companies, in a move shareholders argue will bring great efficiency and higher profits.