The new agriculture company that is being created from the combination of the $130 billion Dow/DuPont merger is beginning to take shape.
The two companies announced today that the new agriculture business will be managed from Wilmington, Del., which will be the new corporate headquarters. The company will also operate two “global business centers” in Johnston, Iowa (where DuPont Pioneer is based) and Indianapolis. Both Indiana and Iowa had hoped to become the home of the new company.
The new company will be an immediate player, given the scope of Dow and DuPont’s agricultural portfolios in seed, crop protection and crop chemicals. The two firms’ ag businesses alone had pro forma revenue of $19 billion in 2014, making it larger than Monsanto, Syngenta or Bayer.
Dow/Dupont Announces New Headquarters
“This efficient structure takes full advantage of the unique expertise and resources that exist in each location, enabling us to deliver the long-term opportunity for the leading global Agriculture company we intend to create,” said Edward D. Breen, chairman and chief executive officer of DuPont. “Our deep presence in Iowa and Indiana will continue the close ties to our customer base and the broader Agriculture community, while leveraging the existing corporate infrastructure and expertise we have in Delaware--DuPont’s home for more than 200 years.”
The new company has not yet been officially named, but Friday’s announcement said that “DuPont” will be in the name, once it’s finalized by Dow and DuPont leaders.
The two companies revealed their intention to merge in December. The plan includes splitting the newly combined firm into three independent companies (agriculture, material science and specialty products) within two years.