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DuPont, Dow Chemical Stocks Surge as Merger Rumors Spread

Published by: Dave Simmons on 9th Dec 2015 | View all blogs by Dave Simmons

DuPont, Dow Chemical Stocks Surge as Merger Rumors Spread

Rumors began swirling Wednesday that Dow Chemical Co. and DuPont have begun discussing a merger that would create a $130 billion titan in the chemical industry, prompting both stocks to surge. Shares of Dow Chemical spiked 11.7 percent to a record high of $56.82 at one point during the trading day, while DuPont jumped as much as 13.7 percent at one point and was very much on pace to see its biggest one-day gain ever. The merger talks were first reported Tuesday by the Wall Street Journal, who also said the combined company would then be split into three. The new companies would diversify the new company's agricultural, chemical and materials businesses. Neither company has been willing to speak publicly on the merger rumors, but multiple sources were reporting it by Wednesday afternoon.

Both Dow and DuPont have struggled recently with the declining demand for farm chemicals, even as their plastics and specialty chemicals businesses have thrived thanks to lower energy costs. Should the two companies come to an agreement, a potential merger would likely face scrutiny from regulators all around the world.

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