(DTN) -- Shareholders from Dow Chemical and DuPont voted Wednesday to approve the merger, creating DowDuPont at separate but simultaneous shareholder meetings Wednesday morning.
In a joint statement, company executives stated the vote was a key milestone in the merger, which they expect to be completed sometime later this year after regulatory approval.
The merger creates one of the largest biotechnology, seed and agrichemical companies in the world with an array of brand names for seed, biotech traits, insecticides, herbicides and fungicides.
The $130 billion merger is expected to generate roughly $3 billion in cost savings as each company has already announced facility closures and layoffs.
"The overwhelming support of Dow and DuPont stockholders to approve this historic merger transaction is a clear testament to the compelling value proposition and enhanced shareholder value that DowDuPont represents," said Andrew Liveris, Dow's chairman and chief executive officer. "Today is a pivotal step toward bringing together these two iconic enterprises, and to the subsequent intended separation into three leading, independent technology and innovation-based science companies that will generate significant benefits for all stakeholders."
Ed Breen, chair and chief executive officer of DuPont, added: "We are pleased to receive such strong support from our stockholders, which represents an essential milestone in the combination of our two companies and our intention to subsequently separate into three independent companies. We are now focused on important next steps toward completing the merger transaction, including working with regulators in the appropriate jurisdictions. We are confident that this merger will create long-term, sustainable value for stockholders and superior solutions and choices for customers."
Dow and DuPont plan to bring together the two chemical giants then spin them off over the next two years into separate divisions, including agricultural, industrial chemical and specialty products companies. The agricultural division would have about $16 billion in combined annual revenues.
The deal must still be approved by the U.S. Department of Justice for possible antitrust issues. Further, at least 19 other governments, including the European Union and China, must also approve the merger.