Dow to Divest a Portion of Its Corn Hybrid Seed Business in Brazil to CITIC Agri Fund
July 11 2017 - 5:00PM
Business Wire
Transaction marks continued progress in proposed Dow and DuPont
transaction
The Dow Chemical Company (NYSE: DOW) announced today that it has
entered into a definitive agreement with CITIC Agri Fund to divest
a select portion of Dow AgroSciences' corn seed business in Brazil
for a purchase price of $1.1 billion. The scope of the divestiture
includes seed processing plants and seed research centers, a copy
of Dow AgroSciences’ Brazilian corn germplasm bank, the Morgan seed
brand and a license for the use of the Dow Sementes brand for a
certain period of time. The assets being divested generated
revenues in 2016 of approximately $287 million.
The divestiture is intended to satisfy Dow’s commitments to
Brazil’s Administrative Council for Economic Defense (CADE) in
connection with its conditional regulatory clearance of the
proposed merger with DuPont. The divestiture will be conditioned on
Dow and DuPont closing their merger transaction, in addition to
other customary closing conditions, including approval of the
divestiture transaction by CADE.
“Today’s announcement further advances the regulatory approval
process, and maintains the strategic logic and value creation
potential of our merger with DuPont and the three independent
companies we intend to create,” said Andrew Liveris, Dow’s chairman
and chief executive officer. “We believe this agreement serves the
best interests of all stakeholders, including our shareholders,
customers and employees. The combination of our portfolios, even
with this divestiture, will create a much stronger Agriculture
company with greater choice and innovation for growers around the
world.”
The established assets involved in this local remedy are
incremental to the previously announced divestment of certain parts
of DuPont’s global crop protection portfolio and R&D pipeline
and organization and Dow’s global Ethylene Acrylic Acid copolymers
and ionomers business, consistent with commitments already made to
the European Commission and regulatory agencies in other
jurisdictions.
Both companies are working together for a seamless transition
for all stakeholders.
Dow and DuPont continue to work constructively with regulators
in the remaining jurisdictions to obtain clearance for the merger
and are making progress in fulfilling the requirements of the
conditional approvals that have already been received.
The merger transaction is still expected to generate cost
synergies of approximately $3 billion and growth synergies of $1
billion, and both companies have reaffirmed their expectation to
close the merger in August 2017, with the intended spin-offs to
occur within 18 months of closing.
About Dow
Dow (NYSE: DOW) combines the power of science and technology to
passionately innovate what is essential to human progress. The
Company is driving innovations that extract value from material,
polymer, chemical and biological science to help address many of
the world's most challenging problems, such as the need for fresh
food, safer and more sustainable transportation, clean water,
energy efficiency, more durable infrastructure, and increasing
agricultural productivity. Dow's integrated, market-driven
portfolio delivers a broad range of technology-based products and
solutions to customers in 175 countries and in high-growth sectors
such as packaging, infrastructure, transportation, consumer care,
electronics, and agriculture. In 2016, Dow had annual sales of $48
billion and employed approximately 56,000 people worldwide. The
Company's more than 7,000 product families are manufactured at 189
sites in 34 countries across the globe. References to "Dow" or the
"Company" mean The Dow Chemical Company and its consolidated
subsidiaries unless otherwise expressly noted. More information
about Dow can be found at www.dow.com.
®TM Trademark of The Dow Chemical Company (“Dow”) or an
affiliated company of Dow
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The Dow Chemical CompanyRachelle
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