Dow Chemical and DuPont officially announced an all-stock merger Friday valued at $130 billion combining two of the biggest and oldest U.S. chemical producers into DowDuPont. The deal that Reuters says could trigger more consolidation, is expected to please activist investors and generate tax savings. The merger is the start of the deal, which will soon split the two into three companies focusing on agriculture, materials and specialty products if the deal is approved. The merger faces regulatory scrutiny especially over combining their agricultural businesses, which sell seeds and crop protection chemicals, including insecticides and pesticides, according to analysts. Executives from both companies said the agrichemicals businesses have little overlap and any asset sales would likely be minor. The companies have been struggling with falling demand for farm chemicals due to slumping crop prices and a strong dollar, even as their plastics businesses thrive thanks to low natural gas prices.
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