DowDuPont Realigns Business Divisions

Reuters: Company making changes to avoid "fight with activist investors."

DowDuPont (NYSE:DWDP), Midland, MI, and Wilmington, DE, the company officially founded Sept. 1 following the lengthy merger of Dow Chemical and DuPont, has made adjustments to its materials science and specialty products divisions to better align these businesses with the end-markets they serve.

DowDuPont will realign the following businesses to the specialty products division from the materials science division:

  • Dow’s automotive systems’ adhesives and fluids platforms
  • Dow’s building solutions business
  • Dow’s water and process solutions business
  • Dow’s pharma and food solutions business
  • Dow’s microbial control business
  • DuPont’s performance polymers business
  • Several silicones-based businesses aligned with applications in industrial LED, semiconductors, medical, as well as Molykote brand lubricants for automotive and industrial equipment and Multibase Inc., which provides solutions for the thermoplastic compounding industry

On a forecasted 2017 basis, the businesses that will be realigned to the specialty products division account for total net sales of more than $8 billion.

The changes are being made to avert a "prolonged fight with activist investors over its post-merger plans," according to a Reuters report.

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