Dow Chemical and DuPont are in the midst of merger talks, the Wall Street Journal is reporting, setting off a flurry of discussion in the chemical and agribusiness industry about what such a deal could mean long-term.
Wall Street Journal reported Tuesday that together, the companies are worth almost $120 billion. A deal could mean that assets are split into several businesses, each focusing on the companies' key areas – agricultural, materials and material sciences, and specialty products, WSJ said.
In the ag sector, the two companies are leaders in pesticides and seed, selling about 17% of the world's pesticides, 41% of U.S. seed corn and 38% of the soybeans, according to data compiled by Morgan Stanley and reported by WSJ.
That sizeable involvement in the ag sector could be in part what's driving the deal talks, Reuters reported, as demand falls for farm chemicals as the ag industry faces lower receipts.
Take a look at the news and commentary on a Dow-DuPont merger:
Dow Chemical and DuPont are in advanced talks to merge – Wall Street Journal
Dow-DuPont an activist coup on Corporate America – Reuters commentary