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DuPont, Dow merger to be completed in August

California residents may have been closely following the DuPont/Dow merger, with all its ups and downs along the way. Now, DuPont Co., which is set to merge with Dow Chemical Co. in August, has seen support from farmers across the United States. The merger is being heralded as "historic" at $75 billion. The sale of seeds by DuPont in the second quarter went up after the company revealed new types of soybeans. In addition, DuPont has seen more revenue from an increasing need for new insecticides and fungicides.

In fact, the Department of Agriculture reports that the soybean crop being planted by farmers in North America is reaching a new record, with a 7 percent increase in 2017. Earnings from farms rose 11 percent due to seed gains, which made up over 50 percent of DuPont's total profit. DuPont's revenue went up just over 5 percent, reaching $7.42 billion, which is more than what was anticipated.

The merger between DuPont and Dow is considered a merger of equals. The merger was initially set to be completed in December 2016, but there were delays in obtaining antitrust clearances. The deal is now set to be completed in August. Dow and DuPont are currently waiting for antitrust approval from Brazil and the European Commission.

Once the two companies merge, the new company will be split into three entities. One, which will stay under the name "Dow," will be a materials-science company. The other two entities will serve agriculture and specialty product needs.

Due to its size, this merger is notable. But, it does show how a merger can be a boon to both parties involved. While sometimes there are antitrust concerns, once these hurdles are overcome, a merger can be a wise move for many companies looking to grow. Corporate law attorneys can provide further information to those who want information about mergers.

Source: Bloomberg, "DuPont Gets Boost From Farmers With Dow Merger Set to Close," Jack Kaskey, July 25, 2017

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