Reports from Bloomberg and other news sites reported during the past week that the merger between Dow and DuPont is close to winning approval by the European Union.
That news led to DuPont shares coming close to hitting the $80.60 Wednesday, a figure near the company’s record price of more than $82.44 a share in May 1998. In the late 1970s, shares had fallen into the $7 range.
Shares closed at $79.81 on Friday.
The Ok could come by March and is expected to require the two companies to shed some businesses in areas such as crop protection.
The reports seem to bear out the optimism voiced by DuPont CEO Edward Breen about prospects for the merger.
Regulators also have on the docket a merger between German chemical and drug giant Bayer and U.S.-based Monsanto.
Driving both mergers are tougher times in agricultural areas such as seeds and crop protection. One trouble spot has been Brazil, a large agricultural market that has seen its share of economic turmoil.
For their part, Dow and DuPont, once the merger is approved, will go to work in separating the combined companies into three publicly traded entities, with the flagship operation being agriculture.
The agricultural company, which will have DuPont in its name will be based in Delaware as will one other collection of businesses. The third company will be based in Dow’s hometown of Midland, MI.
Work is said to be underway within DuPont and Dow to prepare for the spinoff of the companies, which is projected to take place 18 to 24 months after the Dow-DuPont merger takes place.
DuPont has about 5,000 employees in Delaware after shedding 1,700 positions last year in a cost-cutting effort. The company earlier this year announced plans to spend $200 million to upgrade the Experimental Station near Wilmington, with the goal of having outside.
The company earlier this year announced plans to spend $200 million to upgrade the Experimental Station near Wilmington, with the goal of having outside entities perform research work at the sprawling facility near the company’s original powder mill.
Gov. John Carney stated at a meeting of the Urban Land Institute this week that the University of Delaware could be one of the research entities at the Experimental Station.
It is also possible that companies now under the Dow umbrella would move research work to the Experimental Station.
