Dow Chemical and DuPont in merger talks, say sources

New York

DOW Chemical Co and DuPont are in talks to merge, creating a chemicals giant with a market value of more than US$120 billion that could then break up into different businesses, people familiar with the matter said on Tuesday.

A deal, which would face regulatory approval in several countries, would allow the two US companies to rejig their assets based on their diverging fortunes.

Their plastics and speciality chemical businesses have benefited from lower energy c…