Big changes are coming in the U.S. chemical industry, as Midland-based Dow Chemical and DuPont are in advanced talks to merge. According to the Wall Street Journal, Dow Chemical’s Chief Executive Officer Andrew Liveris will be the executive chairman and DuPont’s Edward Breen will stay as CEO. A three-way breakup of the company is expected to follow and analysts predict jobs cuts as the consequence. Dow’s recovery from near-insolvency during the financial crisis was followed by pressure from an activist shareholder, Third Point’s Dan Loeb, to cut costs and streamline its business. Dow is the top U.S. chemical maker by revenue and it reported third-quarter earnings that exceeded analysts’ estimates. In May, Dow announced plans to cut approximately 3% of its global workforce and closed facilities after separating its chlorine business. As a result, Dow said it would eliminate1,750 jobs. Liveris completed the sale of the chlorine business on October 5th to focus on more-profitable businesses such as plastic packaging, seeds and pesticides.
