Dow spin-off complete

DowDuPont has completed the spin-off of its Materials Science division as Dow. Shorn of the word ‘Chemical’ from its name, the new Dow is mainly active in packaging, infrastructure and consumer care based on the three key building blocks of ethylene, propylene and silicones. Its stocks are now trading separately on the New York Stock Exchange.

“The new Dow is a more focused and streamlined company with a clear playbook to deliver long-term earnings growth and value creation for all stakeholders. Team Dow is well positioned to achieve our ambition of becoming the most innovative, customer-centric, inclusive and sustainable materials science company,” said CEO Jim Fitterling.

Dow has since opened the $3 billion stock repurchase plan it had announced would take place after the separation. Subsequently, DowDuPont approved a reverse stock split that is intended to increase its share price. This is subject to shareholder approval at a special meeting on 23 May.

The planned separation of DowDuPont’s Agriculture division as Corteva Agriscience remains on track to be completed on 1 June. Like that of Dow, this will be done through a distribution of shares to exiting stockholders on a pro rata basis. The remaining Specialty Products division will be renamed DuPont.