DowDuPont shares start trading today following closure yesterday of the US$130bn ‘merger of equals’

Shares in DowDuPont (NYSE:DWDP) start trading today in New York following the closure yesterday of the US$130bn ‘merger of equals’ between DuPont & Co (NYSE:DD) and Dow Chemical Co. (NYSE:DOW).

DuPont, currently a component of the Dow Jones Industrial Average, has seen its stock climb 11.6% in the year-to-date , while Dow Chemical’s stock has rallied 11.9% boosted by , the merger move, which was first announced in December 2015.

READ: DuPont agrees asset-swap deal with FMC to receive go-ahead for Dow merger

The merger combined two of US’s oldest companies and creates the second-largest chemical company in the world in terms of revenue after BASF of Germany.

Shareholders of Dow Chemical received 1 share in the new company for each Dow share, while DuPont share owners obtained 1.282 shares for each DuPont share.

Dow and DuPont shareholders will each own about 50% of DowDuPont.

The transaction will be followed by a three-way break-up of the merged company, with the resulting companies focused on agriculture, material sciences and specialty products, all of which will be publicly traded.

The chemical companies have said the intended spin-offs are still expected to occur within 18 months of the deal closing.

Story by ProactiveInvestors