DuPont and Dow finalize merger
The two firms, which specialize in the production of backsheets and other materials for the solar industry, have completed a merger of equals that has been on the cards for almost two years.
DuPont and Dow Chemical Company, two of the leading materials suppliers to the solar industry, have successfully completed a merger after more than 18 months of discussions.
The new company is called DowDuPont and will eventually break up into three publicly-traded divisions – agriculture, materials science, and specialty products – that will stratify and streamline the various businesses, expertise and operations that now fall under the DowDuPont umbrella.
The U.S.-headquartered firms have between them been two of the leading suppliers of backsheets, encapsulants and metallization pastes within the solar industry.
This $130 billion ‘merger of equals’ was labelled at the time as a “deal of three centuries”, bringing together many years of knowledge, more latterly focused on solar PV technology.
Each of the three new divisions are expected to be able to allocate capital more effectively, and apply innovations in a more timely and targeted manner, a company press release stated.
The new, 16-strong board of directors has been split equitably between former Dow and DuPont staff, while the three divisions will all be headquartered in the U.S. – agriculture in Wilmington, Delaware; materials science in Midland, Michigan; and the specialty products also in Wilmington, Delaware.
DuPont began as a gunpowder manufacturer in 1802 but over time has expanded into other chemicals, developing polymers such as nylon, neoprene and Lycra. Its revenue last year was $US24.6 billion ($30.9 billion)
Dow Chemical was founded in Michigan in 1897 to produce bromide compounds. It later expanded into chemical and plastics, becoming the second-largest producer behind German giant BASF. Dow Chemical posted sales revenue of $US48.2 billion ($60.6 billion) last year.