Home Indiana Agriculture News Dow-DuPont Merger Deal Closes

Dow-DuPont Merger Deal Closes

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The Dow-DuPont merger, worth $150 billion, closed Thursday, and several spin-off companies could soon be formed. The Des Moines Register reports the first spinoff could be a combination of Pioneer and Dow AgroSciences. 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, but investors are said to be pushing for as many as six independent companies. The merger gained final approval from regulators in June and 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 would 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.

Source: NAFB News Service