Dow, DuPont Merger Wins Shareholder Approvals
21 July 2016
Dow Chemical Co. and DuPont Co. said their shareholders have approved the chemical giants’ plans to merge and later break up into three companies.
Votes were cast in separate special meetings early Wednesday, and approval was widely expected. DuPont Chairman and Chief Executive Ed Breen, in prepared remarks, commented “we are pleased to receive such strong support from our stockholders.”
According to a regulatory filing, roughly 824.8 million Dow Chemical shareholder votes were cast in favor of the merger deal, while about 13.1 million voted against it and 10.7 million abstained.
The company recently had 1.13 billion shares outstanding, according to FactSet.
A DuPont spokesman said that 98.29% of shares voted at the company’s special meeting supported approval of the merger agreement.
According to a regulatory filing, 669.5 million shares were voted to approve the merger plan, with 8.5 million shares voted against the plan and 3.1 million shares abstaining.
DuPont recently had roughly 874 million shares outstanding, according to FactSet.
The deal is expected to close in the second half of the year, pending needed approvals from regulators.
The merged company, which would be called DowDuPont, will include products ranging from corn seeds to Kevlar fiber to foam chemicals used in sneaker soles and serve as a vehicle for reducing costs before breaking up 18 to 24 months after the merger closes.
“We are continuing to work with key regulatory authorities in the U.S. and around the world related to the merger in the major jurisdictions where we operate,” a DuPont spokesman told The Wall Street Journal.
The new companies, each to be publicly traded, would focus on agriculture, material sciences and specialty products in nutrition and electronics.
Source : wsj.com