class="post-template-default single single-post postid-257206 single-format-standard custom-background group-blog masthead-fixed full-width singular wpb-js-composer js-comp-ver-5.4.5 vc_responsive"
Dow-DuPont Merger Deal Closes | KTIC Radio

Dow-DuPont Merger Deal Closes

The Dow-DuPont merger closed Thursday. The deal was worth $150 billion and several spin-off companies could be formed soon. The Des Moines Register reports the first spinoff could be a combination of Pioneer and Dow AgroSciences.

The reason that spinoffs could be formed soon is Dow and DuPont are under pressure from investors to create several smaller companies, now that the deal is complete. Dow and DuPont had initially proposed creating three smaller companies after the deal wrapped up. Investors are said to be pushing for as many as six independent companies.

The merger gained final approval from regulators in June and it has farmers, employees, and state and federal leaders worried. U.S. farmers are staring into the face of a massive wave of consolidation. In addition to Dow-DuPont, ag giants Monsanto and Bayer AG are merging, as are Syngenta and ChemChina.

Before the deal was finalized, Dow and DuPont argued that merging would help them cut costs and drive seed and chemical innovation. However, a Texas A & M study shows seed prices rising 2.3 percent for corn and 1.9 percent of soybeans after both the Dow-DuPont and Monsanto-Bayer mergers.

© 2017 Nebraska Rural Radio Association. All rights reserved. Republishing, rebroadcasting, rewriting, redistributing prohibited. Copyright Information
Share: