Dow Chem, DuPont to combine in merger of equals

Houston

DOW Chemical Co and DuPont Co, two historic giants of US industry, will merge in a deal that's the first step in a plan to create three highly-focused businesses.

The merger, the largest ever in the chemicals industry, will combine products from both Dow and DuPont in the areas of agriculture, commodities chemicals and specialty chemicals to create the new businesses. It comes after two years of pressure from activist investors who argued that shareholders of both companies would realise greater value if they were broken up.