On December 11, 2015, the US-based leading companies Dow and DuPont announced the signing of an agreement giving birth to a giant worth 130 billion dollars, which will be named DowDuPont. During the 18-24 months following the closing of the merger, which is subject to regulatory approval and expected to be completed within the first half of 2016, the company will be split into three independent business units, focusing on agriculture, material science and specialty products.

As reported in a note, under the terms of this agreement, Dow’s and DuPont’s shareholders will receive, for each share already owned, one and 1.282 shares of the new company respectively. In addition, both Dow’s and DuPont’s shareholders will each own approximately 50% of DowDuPont. The synergies which will follow the merger is estimated to result in cost savings of about 3 billion dollars.