The Dow Chemical Company (Dow) and E.I du Pont de Numours and Company (DuPont) have agreed to a 50/50 merger of equals, with market capitalization of approximately $130 billion at announcement. Once the merger is complete, the new company name will be DowDuPont with positioning as a global leader in the three areas of agriculture, material science and specialty products.
The combination of the two companies is intended to provide growers with a broad portfolio of crop protection solutions. Fortunately, California Rice has a positive relationship with the agricultural divisions of both companies. We will continue to foster those relationships as the merger closes in the second half of 2016, with ensuing spin-offs completing 18 to 24 months after the closure. The merger will result in dual headquarters in Midland, MI and Wilmington, DE.
Andrew N. Liveris, the current President, Chairman and Chief Executive Officer of the Dow Chemical Company will lead the newly formed company as Executive Chairman. Edward D. Breen will be the CEO, also leading the Agriculture and Specialty Products Committees. Breen recently took over as CEO of DuPont in November 2015. Previously he was the CEO of Tyco International overseeing a positive restructuring of the company.
We see the merger as the first of other company combinations to occur. Our view of the merger is a positive step in providing the agricultural industry with crop protection solutions. Hopefully a more back to basics approach of product discovery with novel technologies.