DowDuPont's split and merger strategy: "Two in One" is aimed at "One Split into Three".
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2024-11-12
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Recently, the materials science company Dow and the specialty products company DuPont showcased some of their integrated businesses in Beijing. On April 25, Yu Miao, the business director of Dow's polyurethane division for the Asia-Pacific region, told a reporter from the 21st Century Business Herald that the purpose of the merger of these two century-old companies is to split. After the merger, they aim to achieve a split into three within two years to reallocate resources and businesses, with each of the three companies focusing on their respective vertical fields of expertise.
Industry analysts believe that in the next 2-3 years, Dow and DuPont will readjust their business segments after the merger, with some rapidly growing departments receiving priority development, while also specializing and reorganizing the different business areas of the two companies to enhance complementarity and strengthen their capabilities.
On April 26, Peng Ruoming, the automotive applications development director for the Asia-Pacific region at DuPont's Transportation and Advanced Materials Division, cited an example to a reporter from the 21st Century Business Herald, stating that his new department was formed by merging departments from DuPont, Dow, and Corning. Each merged part is different, but for customers, the new department can provide one-stop services, enhancing competitiveness. "For example, it is very difficult for DuPont to develop adhesive technology on its own, but now with the addition of Dow's adhesive department, which is a leader in the industry, these issues can be resolved."
At the same time, the business leaders from Dow and DuPont stated that China is an important market for them, and they will continue to increase their investment in localization in China. For instance, a few months ago, Dow and DuPont announced an investment of $42 million to expand the capacity of their factory in Shenzhen.
The three major businesses will be listed separately.
On August 31, 2017, Dow Chemical Company (Dow) and DuPont Company (DuPont) successfully completed a merger of equals. The merged entity is a holding company named "DowDuPont," which has three major business divisions: agriculture, materials science, and specialty products.
At that time, based on the market values of the two companies, the market value of the merged DowDuPont exceeded $150 billion, surpassing that of the original chemical industry leader, Germany's BASF, making it the new global leader in the chemical industry.
DuPont was founded in 1802 and is headquartered in Wilmington, Delaware, USA. Its businesses include electronic materials, electronics communications, crop protection, and more.
Dow Chemical was founded in 1897 and is headquartered in Midland, Michigan, USA. Its business scope includes functional products, advanced materials, basic materials, health, and agricultural technology.
Shi Rui, the global president of DuPont's Transportation and Advanced Materials, told a reporter from the 21st Century Business Herald that after the merger, it will split into three publicly listed companies, with the agriculture company named Corteva Agriscience, providing seeds and crop protection products; the materials science company named Dow, and the specialty products company named DuPont.
"DowDuPont is expected to split into three companies in the second quarter of 2019, with the first company being Dow, and in June, the agriculture company and the new DuPont will be established. The new DuPont company is expected to have annual sales of about $21 billion, covering applications such as solar handheld devices, safety buildings, nutrition and health, as well as industrial biotechnology, transportation, and advanced materials across four business divisions," Shi Rui introduced.
Real-time information
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2024-09-26