The Delaware Council on Development Finance recommended a package for DuPont Co. that would finance a tiny portion of any upgrades to its research and development facilities in New Castle County.
DuPont requested$9.6 million over five years from the Strategic Fund, which consists of $6 million in matching funds to reimburse DuPont for 3 percent of capital expenditures up to $200 million as they invest in facilities in the state of Delaware.
Another $3.6 million would be used to support employment.
The grants are believed to be a factor in a decision to locate an agricultural headquarters in Delaware.
The ag business will be one of three slated publicly traded companies to be created after the merger of Dow and DuPont, now slated for completion this year.
The combined companies would then be split into agriculture, specialty products, and material science. The specialty products business would also be based in Delaware, with the material science offices located in Dow’s home state of Michigan.
Industry analysts and filings from DuPont have indicated that the impact of the two headquarters would be small, with the ag business perhaps employing 100.
Also, DuPont has not made any pledges regarding research and development in Delaware. The company has lopped off 1,700 jobs from its Delaware operations, with the final headcount expected to total around 5,000.
Earlier, the General Assembly passed the Delaware Competes Act, which modernizes and streamlines the state’s corporate tax system.
The legislation apparently passed in response to concerns about keeping jobs in the state from DuPont and its recent spin-off Chemours. Chemours has not made a decision about keeping its headquarters in Delaware.
A small shadow has been cast over the DowDuPont deal with a Bloomberg report that German chemical giant BASF was considering a bid
DuPont shares have been up more than 7 percent on the news, although recently published reports from the New York Times and elsewhere seem to indicate that BASF would face an uphill battle.
The Times Dealbook blog said BASF could wait until the split takes place a couple of years from now and make its move and acquire the standalone agricultural business. The tax-free split could be affected by any bid, the blog entry noted.
