February 19, 2016 / 1:41 PM / in 2 years

DuPont, Dow set home towns for units to be spun off

(Reuters) - DuPont DD.N and Dow Chemical Co DOW.N said two of the three units to be created and spun off following the companies’ mega-merger will be based in DuPont’s home town, and one in Dow’s home town.

The Dupont logo is displayed on a board above the floor of the New York Stock Exchange shortly after the opening bell in New York, December 22, 2015. REUTERS/Lucas Jackson - RTX1ZS46

The two chemical companies agreed to combine in an all-stock merger in December, valued at $130 billion at the time, in a first step towards breaking up into three separate businesses.

The three-way split into agriculture, material sciences and specialty products is likely to occur 18 to 24 months after the merger closes, which is expected in the second half of 2016.

The specialty products unit and the agriculture unit, whose name will feature DuPont, will both be headquartered in DuPont’s home town of Wilmington, Delaware, the companies said on Friday.

They also expects the agriculture company to achieve $1.3 billion in synergies.

The material sciences company will be based in Midland, Michigan, Dow’s current home, and will feature Dow in the company’s name.

Prior to the spinoffs, DowDuPont will be dual headquartered in Wilmington and Midland.

Reporting by Amrutha Gayathri in Bengaluru; Editing by Savio D'Souza

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