The combined company will be named DowDuPont. The parties intend to subsequently pursue a separation of DowDuPont into three independent, publicly traded companies through tax-free spin-offs. This would occur as soon as feasible, which is expected to be 18 to 24 months following the closing of the merger, subject to regulatory and board approval.
The companies will include a leading global pure-play agriculture company, a leading global pure-play material science company and a leading technology and innovation-driven specialty products company. Each of the businesses 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.
Highly synergistic transaction
Upon closing of the transaction, the combined company would be named DowDuPont and have a combined market capitalization of approximately $130 billion at announcement. Under the terms of the transaction, Dow shareholders will receive a fixed exchange ratio of 1.00 share of DowDuPont for each Dow share, and DuPont shareholders will receive a fixed exchange ratio of 1.282 shares in DowDuPont for each DuPont share. Dow and DuPont shareholders will each own approximately 50 percent of the combined company, on a fully diluted basis, excluding preferred shares.
The transaction is expected to deliver approximately $3 billion in cost synergies, with 100 percent of the run-rate cost synergies achieved within the first 24 months following the closing of the transaction. Additional upside of approximately $1 billion is expected from growth synergies.
Merger approved by stockholders
DuPont and The Dow Chemical Company announced that, at their respective special meetings of stockholders held on July 20, stockholders of both companies have voted to approve all stockholder proposals necessary to complete the merger of equals transaction – a key milestone in the process to merge the two companies. The companies expect the merger transaction to close in the second half of 2016, subject to customary closing conditions, including receipt of regulatory approvals. 
—From DuPont and The Dow Chemical Company news releases
