The proposed $130 billion merger of The Dow Chemical Co. (NYSE: DOW) and DuPont (NYSE: DD) could take longer than expected. In the company’s third quarter earnings report, DuPont Chief Executive Officer Ed Breen said it is possible the deal could close in the first quarter of 2017. Dow AgroSciences LLC, an Indianapolis-based division of Dow, Thursday morning reported a big dip in quarterly profit following the divestiture of AgroFresh.
Dow Agro says EBITDA in the third quarter was down to $101 million, compared to $582 million in the same period a year earlier. You can connect to Dow’s full earnings report by clicking here.
The merger had previously been expected to close by the end of this year. Breen says the company is making progress preparing for the merger.
"We continue to work constructively with regulators in key jurisdictions to close the merger as soon as possible," said Breen. "In the event that regulators in those jurisdictions use their full allotted time, closing would be expected to occur in the first quarter of 2017."
The transaction received shareholder approval in July. If approved, the company will be renamed DowDuPont and will spin out into three, independently traded entities. They include an $18 billion ag-focused business, which will have a presence in Indianapolis.
Breen says once the merger closes, the spin-outs will take about 18 months to complete.
In February, Dow and DuPont announced Indianapolis will be the planned future home of a Global Business Center for DowDuPont’s new agricultural spin-off.