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Released March 28, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--With the European Commission's conditional approval, Dow Chemical Company (NYSE: DOW) (Midland, Michigan) and E.I. du Pont de Nemours and Company (NYSE:DD) (DuPont) (Wilmington, Delaware) are one step closer to their planned merger in the first half of this year.
The European Commission announced Monday it had approved the estimated $130 billion merger, with certain conditions that each company must meet. DuPont must divest major parts of its global pesticide business, including its global research and development (R&D) organization.
Commissioner Margrethe Vestager, in charge of the commission's competition policy, said: "Pesticides are products that matter--to farmers, consumers and the environment. We need effective competition in this sector so companies are pushed to develop products that are ever safer for people and better for the environment. Our decision today ensures that the merger between Dow and DuPont does not reduce price competition for existing pesticides, or innovation for safer and better products in the future."
Dow already plans to divest parts of its petrochemicals business as per the European Commission requirements. It announced it would sell its global ethylene acrylic acid (EAA) copolymers and ionomers business to a subsidiary of SK Innovation (Seoul, South Korea).
"This regulatory milestone is a significant step toward closing the merger transaction, with the intention to subsequently spin into three independent, publicly traded companies," Dow and DuPont said in a joint statement. "The transaction is expected to create significant cost synergies of approximately $3 billion with the potential for $1 billion in growth synergies."
Industrial Info is tracking $4.9 billion in active Dow Chemical projects, and $592 million in active DuPont projects.
Dow Chief Financial Officer Howard Ungerleider said during the company's fourth-quarter 2016 earnings presentation in January that Dow Chemical expects capital expenditures this year to amount to about $3.4 billion, down $400 million from what it spent in 2016, as it wraps up key growth projects, such as the 3 billion-pound-per-year Texas 9 ethylene unit addition at Dow's Oyster Creek Chemical Complex in Freeport, Texas, which is expected to be completed this May. For related information, see January 4, 2017, article - The Year Ahead: Ethylene, PDH Capital Projects to Proliferate.
Chief Operating Officer James Fitterling told investment analysts in January that the Texas 9 project had crossed the 95% mechanical completion point, and more than 50% of the new unit operations at the site were already being commissioned and starting up. For more information, see Industrial Info's project report.
In fourth-quarter 2016, Dow completed a 250,000-ton-per-year expansion of its ethylene facility in Plaquemine, Louisiana. "Since startup, we've been conducting test runs of the cracker's new capabilities and we've ramped the ethane cracking capabilities, while also proving the operational reliability of the plant," Fitterling said.
For more information on the Plaquemine project, see Industrial Info's project report.
DuPont's capital expenditures for 2017 are expected to amount to $1.1 billion, up from about $1 billion in 2016, executives said during the company's fourth-quarter 2016 earnings presentation. Industrial Info is tracking a $275 million commercial-scale cellulosic ethanol plant project by DuPont in Nevada, Iowa. Currently expected for completion in July, the plant will process cellulosic material to produce 27.5 million gallons per year of fuel ethanol. For related information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The European Commission announced Monday it had approved the estimated $130 billion merger, with certain conditions that each company must meet. DuPont must divest major parts of its global pesticide business, including its global research and development (R&D) organization.
Commissioner Margrethe Vestager, in charge of the commission's competition policy, said: "Pesticides are products that matter--to farmers, consumers and the environment. We need effective competition in this sector so companies are pushed to develop products that are ever safer for people and better for the environment. Our decision today ensures that the merger between Dow and DuPont does not reduce price competition for existing pesticides, or innovation for safer and better products in the future."
Dow already plans to divest parts of its petrochemicals business as per the European Commission requirements. It announced it would sell its global ethylene acrylic acid (EAA) copolymers and ionomers business to a subsidiary of SK Innovation (Seoul, South Korea).
"This regulatory milestone is a significant step toward closing the merger transaction, with the intention to subsequently spin into three independent, publicly traded companies," Dow and DuPont said in a joint statement. "The transaction is expected to create significant cost synergies of approximately $3 billion with the potential for $1 billion in growth synergies."
Industrial Info is tracking $4.9 billion in active Dow Chemical projects, and $592 million in active DuPont projects.
Dow Chief Financial Officer Howard Ungerleider said during the company's fourth-quarter 2016 earnings presentation in January that Dow Chemical expects capital expenditures this year to amount to about $3.4 billion, down $400 million from what it spent in 2016, as it wraps up key growth projects, such as the 3 billion-pound-per-year Texas 9 ethylene unit addition at Dow's Oyster Creek Chemical Complex in Freeport, Texas, which is expected to be completed this May. For related information, see January 4, 2017, article - The Year Ahead: Ethylene, PDH Capital Projects to Proliferate.
Chief Operating Officer James Fitterling told investment analysts in January that the Texas 9 project had crossed the 95% mechanical completion point, and more than 50% of the new unit operations at the site were already being commissioned and starting up. For more information, see Industrial Info's project report.
In fourth-quarter 2016, Dow completed a 250,000-ton-per-year expansion of its ethylene facility in Plaquemine, Louisiana. "Since startup, we've been conducting test runs of the cracker's new capabilities and we've ramped the ethane cracking capabilities, while also proving the operational reliability of the plant," Fitterling said.
For more information on the Plaquemine project, see Industrial Info's project report.
DuPont's capital expenditures for 2017 are expected to amount to $1.1 billion, up from about $1 billion in 2016, executives said during the company's fourth-quarter 2016 earnings presentation. Industrial Info is tracking a $275 million commercial-scale cellulosic ethanol plant project by DuPont in Nevada, Iowa. Currently expected for completion in July, the plant will process cellulosic material to produce 27.5 million gallons per year of fuel ethanol. For related information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
