The Dow Chemical Co., based in Michigan, and Delaware-based DuPont are nearing the end of the regulatory approval process for their upcoming merger into DowDuPont, and the companies are now targeting a second-quarter closing date.
The closing date was supposed to be in the second half of 2016, according to the Dow press release that originally announced the deal. The companies both have offices in Houston.
“We’re probably at the tail end, we think — we hope — with the regulatory approval of the European Commission,” said Doug May, Dow’s hydrocarbon business president, at an interview at CERAWeek by IHS Markit.
May said that approval is expected by the end of the month, while other major regulatory hurdles — in U.S., China and Brazil — to follow relatively soon afterward.
“To be clear, we don’t control the timing of these regulatory bodies, but that’s our best guess,” May said.
The merger was originally announced toward the end of 2015, making this process an unusually long one as far as mergers go. That’s at least partly because of the scale of the merger and the number of jurisdictions it falls into, May said. The market capitalization of the combined company post-merger is expected to come in around $130 billion, Dow said in the original release.
DuPont has already seen some employment cuts as a result of the merger, and Dow’s president, chairman and CEO, Andrew Liveris, said on his company’s fourth-quarter earnings call in January that the deal would mean a reduction in headcount, though he pointed out that longer-term plans involve growth.
The companies plan to spin off into three independent, public companies after the merger.
By Joshua Mann
Source: Houston Business Journal
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?