Dow DuPont Merger Deal Closes

Thursday was the day the Dow and DuPont merger officially closed.  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% for corn and 1.9% of soybeans after both the Dow-DuPont and Monsanto-Bayer mergers.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com