We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DuPont Lands Deal With FMC, Pushes Back Dow Merger Closing
Read MoreHide Full Article
DuPont (DD - Free Report) has struck a deal to sell part of its Crop Protection business to chemical company, FMC Corp. (FMC - Free Report) . Moreover, DuPont has agreed to buy substantially all of FMC's Health & Nutrition business. DuPont will get $1.6 billion from the transaction, reflecting the difference in the value of the assets.
The divestment will satisfy DuPont's commitments to the European Commission in connection with the latter’s conditional regulatory approval of the proposed $130 billion mega-merger of DuPont and Dow Chemical (DOW - Free Report) .
Under the deal terms, FMC will buy DuPont's Cereal Broadleaf Herbicides and Chewing Insecticides portfolios as well as some of the latter’s Crop Protection research and development pipeline and organization. The assets being put up for sale generated revenues of around $1.4 billion last year.
As part of the deal, DuPont will purchase FMC's Health & Nutrition business that raked in more than $700 million in revenues in 2016. The acquisition, which is highly complementary to DuPont's Nutrition & Health business, will boost the company’s nutrition and health capabilities with expanded offerings and footprint.
The deal with FMC is expected to complete in the fourth quarter of 2017. The transaction is subject to the completion of the DuPont-Dow merger and other customary closing conditions.
DuPont and Dow have also amended their merger deal to accommodate the requirements of the FMC transaction. The companies now expect completion of their merger to take place between Aug 1, 2017 and Sept 1, 2017. The closing is subject to satisfaction of customary closing conditions including receipt of regulatory approvals. Earlier, the transaction was expected to complete in first-half 2017.
Following the completion of the merger, the combined entity would eventually break up into three independent companies through tax-free spin-offs. The breakup is still expected to take place within 18 months after the completion of the deal. The companies also noted that they now expect the first in the planned business separation will be the spin-off of the post-merger Material Science company.
The merger is projected to deliver cost synergies of around $3 billion, expected to be achieved with the first two years after the deal closure. Around $1 billion of additional growth synergies are also expected to be achieved from the merger.
DuPont has outperformed the Zacks categorized Chemicals-Diversified industry over a year, helped by its forecast-topping earnings performance and aggressive cost-cutting initiatives. The company’s shares have gained 25.9% over this period, compared with the industry’s gain of 19.4% over the same period.
DuPont is focused on an aggressive cost-cutting strategy. Further, DuPont remains committed to introduce new higher-performing products to meet farmers’ needs. The company is also focused on maintaining a strong balance sheet and returning excess cash to shareholders.
A better-ranked stock in the chemical space is Univar Inc. . Univar sports a Zacks Rank #1 (Strong Buy) and has an expected long-term growth rate of roughly 9.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DuPont Lands Deal With FMC, Pushes Back Dow Merger Closing
DuPont (DD - Free Report) has struck a deal to sell part of its Crop Protection business to chemical company, FMC Corp. (FMC - Free Report) . Moreover, DuPont has agreed to buy substantially all of FMC's Health & Nutrition business. DuPont will get $1.6 billion from the transaction, reflecting the difference in the value of the assets.
The divestment will satisfy DuPont's commitments to the European Commission in connection with the latter’s conditional regulatory approval of the proposed $130 billion mega-merger of DuPont and Dow Chemical (DOW - Free Report) .
Under the deal terms, FMC will buy DuPont's Cereal Broadleaf Herbicides and Chewing Insecticides portfolios as well as some of the latter’s Crop Protection research and development pipeline and organization. The assets being put up for sale generated revenues of around $1.4 billion last year.
As part of the deal, DuPont will purchase FMC's Health & Nutrition business that raked in more than $700 million in revenues in 2016. The acquisition, which is highly complementary to DuPont's Nutrition & Health business, will boost the company’s nutrition and health capabilities with expanded offerings and footprint.
The deal with FMC is expected to complete in the fourth quarter of 2017. The transaction is subject to the completion of the DuPont-Dow merger and other customary closing conditions.
DuPont and Dow have also amended their merger deal to accommodate the requirements of the FMC transaction. The companies now expect completion of their merger to take place between Aug 1, 2017 and Sept 1, 2017. The closing is subject to satisfaction of customary closing conditions including receipt of regulatory approvals. Earlier, the transaction was expected to complete in first-half 2017.
Following the completion of the merger, the combined entity would eventually break up into three independent companies through tax-free spin-offs. The breakup is still expected to take place within 18 months after the completion of the deal. The companies also noted that they now expect the first in the planned business separation will be the spin-off of the post-merger Material Science company.
The merger is projected to deliver cost synergies of around $3 billion, expected to be achieved with the first two years after the deal closure. Around $1 billion of additional growth synergies are also expected to be achieved from the merger.
DuPont has outperformed the Zacks categorized Chemicals-Diversified industry over a year, helped by its forecast-topping earnings performance and aggressive cost-cutting initiatives. The company’s shares have gained 25.9% over this period, compared with the industry’s gain of 19.4% over the same period.
DuPont is focused on an aggressive cost-cutting strategy. Further, DuPont remains committed to introduce new higher-performing products to meet farmers’ needs. The company is also focused on maintaining a strong balance sheet and returning excess cash to shareholders.
DuPont is a Zacks Rank #3 (Hold) stock.
E.I. du Pont de Nemours and Company Price
E.I. du Pont de Nemours and Company Price | E.I. du Pont de Nemours and Company Quote
A better-ranked stock in the chemical space is Univar Inc. . Univar sports a Zacks Rank #1 (Strong Buy) and has an expected long-term growth rate of roughly 9.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>