Dow Chemical-DuPont deal will bond nearly $47 billion in retirement assets
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The merger announced on Friday of Dow Chemical Co., Midland, Michigan., and E.I. du Pont de Nemours & Co., Wilmington, Delaware., will create a company with total retirement plan assets of $46.5 billion.
The new $130 billion company, DowDuPont, results from an all-stock merger of equals. DuPont shareholders will receive 1.282 shares of DowDuPont for each Dow share, while Dow shareholders will receive one share of DowDuPont for each Dow share.
DowDuPont then plans to break up into three separate companies — agriculture, material science and specialty products — around 18 to 24 months following the completion of the merger in the second half of 2016.
As of Sept. 30, DuPont had $14.3 billion in defined benefit plan assets and $10.1 billion in defined contribution plan assets, and Dow Chemical had $13.8 billion in defined benefit plan assets and $8.3 billion in defined contribution plan assets, according to Pensions & Investments data.
As of Sept. 30, DuPont's DC plan investment consultant is Segal Rogerscasey and record keeper is Bank of America Merrill Lynch. As of Dec. 31, Dow Chemical's DC plan record keeper was Fidelity Investments, according to the company's most recent Form 5500 filing.
Whether the plans will merge and how it will affect the assets under management of DuPont Capital Management, DuPont's money management unit, could not be immediately learned.
Neither a Dow Chemical spokeswoman nor a DuPont spokesman immediately returned phone calls.
Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance.
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