Sector News

DowDuPont spin-offs to occur by mid-2019

February 2, 2018
Energy & Chemical Value Chain

DowDuPont says its planned materials science spin-off–the future Dow Chemical–will occur by the end of the first quarter of 2019, with specialty products and agriculture to separate into two different companies by 1 June 2019.

DowDuPont had expected the spin-offs to occur within 24 months of close of the merger, which was on 1 September 2017. The accelerated timeline is “based on the progress we’ve made” getting the organizations in place and identifying possibilities for cost-cutting and synergies, according to DowDuPont CEO Edward Breen.

The company expects to identify assets and liabilities for the three spin-off entities during the first half of this year. Initial SEC filings are expected in second half of the year, with equity road-shows to follow during the first quarter of 2019. Full management teams for materials science, specialty products, and agriculture will also be identified during that time. DowDuPont will also be working to set up legal entities and corporate functions for the new companies over the next year.

Meanwhile, the company is raising its target for total cost cuts to $3.3 billion, from $3 billion. Some $800 million/year in cost cuts have been identified thus far, a larger figure than initially forecast, according to Breen. These higher savings figures are largely due to work on procurement activities, and further savings are possible, Breen says. The focus is now moving to growth synergies, and the company expects to release more specifics on those in upcoming the coming quarters, he adds.

By Vincent Valk

Source: Chemical Week

comments closed

Related News

February 25, 2024

Antwerp Declaration for a European Industrial Deal: industry leaders call for 10 urgent actions to restore competitiveness and keep good jobs in Europe

Energy & Chemical Value Chain

During a European Industry Summit held on the site of BASF in Antwerp, leaders from basic industry sectors, representing 7.8 million workers in Europe, joined forces with European trade unions and European leaders to address pressing concerns regarding Europe’s industrial landscape.

February 25, 2024

Blue hydrogen could contribute 50% more to global warming than fossil fuels

Energy & Chemical Value Chain

The use of blue or low-carbon hydrogen, made from natural gas with carbon capture and storage (CCS), could increase near-term global warming by 50% compared with burning fossil fuels directly for energy if emissions are not properly managed, according to a new study by NGO the US Environmental Defense Fund (EDF) and the University of Arizona.

February 25, 2024

EU approves €6.9 Billion state aid for 33 hydrogen projects

Energy & Chemical Value Chain

In a move to improve the supply of renewable hydrogen and thus reduce dependence on natural gas and contribute to achieving the objectives of the European Green Deal and the REPowerEU plan, the EU Commission has approved a third Important project of common European interest (IPCEI) to support hydrogen infrastructure.

How can we help you?

We're easy to reach