Dow Chemical Co. and DuPont Co. announced Friday that they have agreed to merge, fusing two stalwarts of American industry into a giant worth about $130 billion.
The deal would reshape the chemical and agricultural industries and comes as sinking commodity prices and a strengthening U.S. dollar have pressured revenue at both Dow and DuPont.
The companies plan to strip out about $3 billion in costs as they combine operations and ultimately break up into three separate businesses about 18 to 24 months after closing the deal. Those three resulting companies, which would be publicly traded, would be focused on agriculture, material sciences and specialty products.
The union marks a new chapter for two of the oldest U.S. companies, which had both sought to reinvent themselves as makers of more-profitable products while facing pressure from major investors agitating for the companies to make faster, bolder moves...Of course, there will be layoffs. From the same article:
Friday’s announcements will lead to major job cuts. DuPont said it is cutting about 10% of its global workforce in its restructuring ahead of the deal, and further reductions are likely as the combined company streamlines ahead of its planned breakup.Here's the official DuPont press release.
This is terrible news for all chemists involved, I feel. Best wishes to those affected.
UPDATE: Lots of current employee comments about DDP (my unofficial nickname, homage to Mr. Page Joseph Falkinburg) over at the Chemistry Reddit.