Dow Chemical of Midland and DuPont get the green light for their planned merger. The deal will create a world chemical giant. And it also has Michigan employment officials and the Midland area wondering about the future.
Final anti-trust approval is given by the U-S for Dow and DuPont for their 73-billion dollar merger of equals. Both companies will selloff small units to make the deal acceptable to regulators. Canada’s decision is still pending.
The new company will be called DowDuPont. Ed Breen, DuPont’s chairman and chief executive officer, will be CEO of the new company, while Dow’s boss, Andrew Liveris, will be chairman.
The new company would cut back on the amount they spent on developing products.
How much is unclear, because when the merger is complete, more big changes are planned. Dow and DuPont are planning to split the merged company into three companies within 18 months of closing, with the first spinoff a materials-science company that will retain the Dow name. The other two companies will focus on agriculture and specialty products.
One thing is sure: efficiencies will be created. That almost certainly means job cutbacks. There could be thousands. Many DuPont jobs are in the east. Mid-Michigan, especially Midland, is Dow country. The merger is expected to close in August.
If the state has some idea about job losses, they’re not saying. But they have the potential to cripple communities that depend on Dow.
Executives say that eventually the 3 new companies could have the potential to create new jobs. But the road to get there could be painful.
