US industrial giants Dow Chemical and DuPont are to take a fresh look at plans for dividing up the company once their $130bn merger has been completed.
The two companies are set to merge in August to create DowDuPont, a mammoth industrial conglomerate.
The plan has been to split the company into three separate entities within 18 months. One business will focus on agriculture, another on technology and innovation-driven products, and the third dealing with material sciences.
However, investors have been concerned the planned split might not be in the best interests of shareholders.
Now both companies have agreed to carry out "a comprehensive review of the business composition of each division”, according to a statement released by DuPont.
A director from each company – Jeff Fettig at Dow and Sandy Cutler from DuPont – will head up a review of the new combined company to ensure the new business entities deliver shareholder value.
The two companies said in a statement on Thursday (May 11) it was “committed to ensuring each of the companies will have clear focus, an appropriate capital structure, a distinct and compelling investment thesis, scale advantages, and focused investments in innovation to better deliver superior solutions and choices for customers.”
Ed Breen, chairman and chief executive officer of DuPont, said, “The DowDuPont board of directors will be composed of highly accomplished leaders who are intently focused on the creation of long-term value for shareholders.
"Together we will deliver on the significant promise of the DowDuPont combination and the subsequent intended creation of world-leading companies – enabling innovation, growth and reinvestment that will benefit all stakeholders."
The merger has been approved by regulators in the European Union (EU), Brazil and China. Approvals from the US, Canada and Australia are expected soon.
EU approval is conditional on the sale of parts of DuPont’s pesticides business.