DuPont (NYSE: DD) and The Dow Chemical Co. (NYSE: DOW) have announced the structure for the agriculture giant the companies want to create following their planned merger. The $130 billion merger creating DowDuPont will eventually involve the creation of three separate companies, including a massive agriculture company. Indianapolis, home of Dow AgroSciences LLC, has been competing to be the corporate home for the ag behemoth. That won’t happen.
The corporate headquarters for the $18 billion ag company will be located in Wilmington, Delaware. Indianapolis and Johnston, Iowa will serve as Global Business Centers in the new structure. The board of directors for Dow Chemical voted in favor of the merger in mid-December. Since that time, Iowa Workforce Development has announced more than 175 layoffs at the DuPont Pioneer headquarters in Johnston.
Governor Mike Pence said "I’m grateful for the confidence that Dow and DuPont have placed in our people and for the collaboration with city officials that made this exciting announcement possible. With the announcement of this Global Business Center for the new DowDuPont, Hoosiers can be assured our state will continue to play a leading role in the future of this exciting new company."
Ag insiders tell Inside INdiana Business the news is a win for the state, which could have lost its significant Dow AgroSciences footprint. Instead, Indy will be home to the new company’s crop protection business, which is expected to represent 50 percent of the new company’s revenue. Dow AgroSciences employs approximately 1,400 in central Indiana.
In an interview immediately following the Friday morning announcement, Indiana Economic Development Corp. President Jim Schellinger told Inside INdiana Business the decision came together quickly. He says the decision to locate a Global Business Center in Indianapolis reflects well on the work force and industry in the state, as the jobs involved pay an average salary of $130,000.
The new agriculture company would be the largest of its kind globally and a significant portion will be based in Indianapolis.
"We were impressed by the commitment put forth by the city and state and their focus on maintaining a hub of innovation in Indianapolis," said Dow AgroSciences Chief Executive Officer Tim Hassinger in a prepared statement.
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