Dow Chemical and DuPont have agreed to combine their operations into one company that will subsequently split into three, marking one of the largest mergers in the history of business. The $130 billion dollar deal is among the top 20 biggest mergers ever.

Ashok Abbott is an associate professor of finance at the West Virginia University College of Business and Economics. His areas of research and teaching include international finance, corporate finance, mergers and acquisitions, and corporate valuations.

“The merger appears to be driven by the global slowdown and lack of opportunities for growth in chemical industry” Abbot said. “The merger is expected to lead to a three way split of the resulting entity, with one of the divisions becoming a leading producer of agricultural chemicals. The degree of redundancy in this area between DuPont and Dow is lower than in other areas.”

Both Dow and DuPont have operations in West Virginia. Dow operates the former Union Carbide site in South Charleston, as well as the Bayer Crop Sciences plant in Institute. DuPont has a facility in Belle, and another plant just south of Parkersburg.

Professor Abbot believes as a result of the merger, West Virginia may see a reduction in administrative workforce but production is less likely to be affected in the short term.

He may be reached with media questions or requests for interviews via email at ashok.abbott@mail.wvu.edu.

West Virginia University experts can provide commentary, insights and opinions on various news topics. Search for an expert by name, title, area of expertise, or college/school/department in the Experts Database at WVU Today.

-WVU-

ak/12/11/15

CONTACT: University Relations
304.293.6997

Follow @WVUToday on Twitter.