Dow DuPont Merge; Trans-Pacific Partnership Takes a Hit
Dow Chemical and DuPont officially announced an all-stock merger on Friday valued at $130 billion combining two of the biggest and oldest U.S. chemical producers into DowDuPont. The deal could trigger more consolidation, is expected to please activist investors and generate tax savings. The merger is the start of the deal, which will soon split the two into three companies focusing on agriculture, materials and specialty products if the deal is approved. The merger faces regulatory scrutiny especially over combining their agricultural businesses, which sell seeds and crop protection chemicals, including insecticides and pesticides, according to analysts.
Striking a blow to the Trans-Pacific Partnership, Senate Majority Leader Mitch McConnell said last week the trade deal should not be sent to Congress for approval until after the 2016 elections and maybe not until after Obama leaves office. McConnell signaled that he was undecided on how he would vote on the deal, but he was clear that the trade pact would be defeated if it were sent to Capitol Hill next spring or summer, as the administration was planning to do. McConnell told the Washington Post “there’s significant pushback all over the place.” Other pushback comes from environmentalist, labor leaders and the Chamber of Commerce.