FMC stock soars after DuPont says it will swap some assets; DuPoint delays Dow merger

Source: Dupont

DuPont research scientists at work in a biobutanol molecular biology lab

DuPont said on Friday it would swap some assets with FMC to get clearance from the European Commission for its merger with Dow Chemical, and pushed back the closing date of its merger again.

On Friday, FMC shares soared more than 15 percent to levels not seen since June 2014.

DuPont said it would sell part of its crop protection business to FMC and buy nearly all of FMC's health and nutrition unit in a deal that will fetch DuPont about $1.6 billion because of the difference in the value of the assets.

DuPont said its $130 billion merger with Dow Chemical, which was expected to close in the first half of 2017, is now anticipated to close between Aug. 1 and Sept. 1.

This is the third time that Dow and DuPont have had to push back the expected completion.

The deal, which also includes DuPont divesting some of its research and development facilities to FMC, includes a cash portion of $1.2 billion and working capital of $425 million.

The European Commission had been concerned that the merger of two of the biggest and oldest U.S. chemical producers would leave few incentives to produce new herbicides and pesticides in the future.

On Events contributed to this report


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