Dow will trade on the New York Stock Exchange beginning today.
The separation was completed on Monday for the Michigan-based company.
DowDuPont common stockholders received one share of common stock of Dow for every three shares of DowDuPont common stock held as of the close of business on March 21. DowDuPont common stockholders will also receive cash in lieu of fractional shares of Dow common stock.
With the spin-off of Dow, DowDuPont will no longer be on the Dow Jones index. Dow will join the index of 30 large companies and trade under its former DOW symbol.
“Today’s announcement completes our first step toward creating three strong, independent growth companies set to be industry leaders focused on driving innovation and delivering long-term value for shareholders,” said Ed Breen, CEO of DowDuPont. “Dow begins its next chapter as a more focused, disciplined and market-oriented company, and I am excited for the tremendous opportunities ahead for its employees, shareholders, and customers.”
DowDuPont remains on track to complete the previously announced separation of its Agriculture Division (Corteva Agriscience) on June 1. After the Corteva distribution, DowDuPont’s Specialty Products Division will come under the DuPont name.
The Wall Street Journal (subscription) reported that the new Dow emerges as a more focused company. Dow itself cited a “more focused, streamlined, and leading materials science company” in its announcement.
Shares were battered and debt soared when Dow acquired Philadephia-based Rohm and Haas earlier in the decade. The acquisition of Rohm and Haas did give Dow faster-growing businesses that included the former Rodel materials polishing business, which was based in Delaware.
A few Dow businesses were moved over. A study of the split amid pressure from some shareholders led to Dow businesses with $8 million in sales moving over to what will become DuPont.
Shares of DowDuPont have declined since the merger of the two companies, the Journal noted. DowDuPont last week lowered its guidancefor the first quarter, citing flooding conditions that are affecting planting of crops as well as softer markets for Dow’s plastics and materials markets.
Corteva and DuPont will be based in Wilmington.