DuPont and Dow Merger Plan

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CBJ — In one of the biggest mergers of 2015, DuPont and Dow Chemical are joining forces in an an all-stock merger valued at $130 billion. The merger would generate enormous tax savings and likely contribute to more consolidation.

Dow and DuPont shares fell on Friday after soaring earlier in the week following reports of negotiations between the two companies.

However, the merger is by no means complete.  It will face intense regulatory scrutiny from U.S. regulators. In the agreement Dow shareholders would own 52% of the new company after preferred shares are converted, while DuPont investors would own the remaining 48%.

DuPont Chief Executive Officer Ed Breen, who as Tyco International’s CEO engineered the breakup of the conglomerate, would be CEO of the new company, and Dow CEO Andrew Liveris would be executive chairman.