Dow Chemical Co.NYSE
Tue, Nov. 15, 1:12 PM
- Dow Chemical (DOW -1.5%) and DuPont (DD -1.6%) expect to receive formal objections to their $60B merger from European Union regulators as soon as next month, Bloomberg reports.
- The European Commission in Brussels is poised to send the complaint in December, and could describe how the merger could reduce competition in areas such as crop protection, seeds and certain petrochemicals, according to the report.
- Institute for Statecraft analyst Alan Riley believes the merger is in much more trouble than ChemChina's prospective deal to buy Syngenta, as "they are both funding R&D in the same fields, so there is a real issue of innovation loss from the deal" that might be difficult to eliminate with guarantees to regulators promising good behavior.
Mon, Nov. 7, 5:21 PM
- U.S. state attorneys general have joined a federal antitrust probe of the planned merger between Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD), adding a new risk to the deal's completion, Reuters reports.
- About seven states, including California, have joined the probe of Dow's planned merger with DuPont, according to the report, which adds that some of the state AGs would join an investigation of the proposed merger of Monsanto (NYSE:MON) and Bayer (OTCPK:BAYRY).
- The states are said to be concerned that the companies may raise pesticide and herbicide prices for farmers following a merger, and have less incentive to compete to introduce better and cheaper products.
Fri, Nov. 4, 8:34 AM
- Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) face further delays to their merger plans after the European Union antitrust regulator again suspends its review of the deal, demanding more information.
- The European Commission says the companies again have not provided important information requested of them; the regulator was forced twice before to pause the review for the same reason.
- A Dow spokesperson says the companies always have expected a "thorough review' from the regulator, adding that the deal is expected to close in Q1 2017.
Thu, Nov. 3, 4:55 PM
- The EPA proposes increasing from 15 to 34 the number of states allowed to use a new version of the popular Enlist Duo weed killer on genetically modified crops despite its earlier concerns.
- The agency had cited information from manufacturer Dow AgroSciences (DOW, DD) that indicated Enlist probably was more toxic to other plants than previously thought, but it now says its review showed Enlist "does not show any increased toxicity to plants and is therefore not of concern."
- The proposal angers environmentalists; the senior attorney with the Center for Food Safety accuses the EPA of "capitulation to the agrichemical industry."
Thu, Nov. 3, 1:35 AM
- Australia's corporate watchdog is concerned about the effects a proposed $130B merger between DuPont (NYSE:DD) and Dow Chemical (NYSE:DOW) may "have on "competition for... insecticides, seeds, and materials science products."
- A final decision by the ACCC will be made on Feb. 2. The tie-up is also being scrutinized by regulators world over, with EU antitrust officials expected to decide on the deal by Feb. 6.
Thu, Oct. 27, 8:58 AM
- Dow Chemical (NYSE:DOW) +1.2% premarket as Q3 earnings marked the company's 12th straight quarter of beating analyst estimates.
- Dow's Q3 sales rose 3.7% Y/Y to $12.48B, also topping analyst expectations, as agriculture sales climbed 5.8% to $1.24B on volume and pricing; YTD sales in the segment are 6.7% lower than in 2015.
- Q3 sales in plastics, Dow's largest segment, rose 0.8% to $4.7B, while performance materials and chemicals sales fell to $2.38B, a 25% drop primarily reflected in the divestiture of its chlorine products business.
- Dow's operating margin expanded by 25 bps to 20% on an EBITDA basis.
- CEO Andrew Liveris offers a rosy outlook on Dow's business environment, seeing "steady growth in North America and Europe continuing."
- Dow and DuPont said earlier in the week that their planned merger, originally scheduled to be completed by year-end, would now likely close in Q1 2017.
Thu, Oct. 27, 6:48 AM
Wed, Oct. 26, 5:30 PM
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Tue, Oct. 25, 10:45 AM
- Dow Chemical (DOW -0.2%) CEO Andrew Liveris says the merger with DuPont (DD -0.6%) may be delayed until February from a planned closing late this year.
- Agriculture is the greatest concern of European regulators, Liveris tells Bloomberg: “One of the strongest lobbies in the world out there is the farm lobby, and in Europe, the agricultural sector is very, very critical to them, somewhat protected."
- The European Commission recently delayed its decision deadline until Feb. 6 as it sought additional information about the merger, but Liveris says the value created by the deal is "worth a few months of delay."
- The CEO does not say whether the companies planned to sell assets to help win approval, although reports have indicated that Dow is seeking a buyer for its copolymers business and DuPont is planning to sell a herbicides business to ease regulators’ concerns.
- In its Q3 earnings report, DuPont CEO Ed Breen said he expects the merger to close sometime during Q1 2017.
Tue, Oct. 25, 8:24 AM
- DuPont (NYSE:DD) +0.8% premarket after reporting better than expected Q3 earnings and revenues, and raises its FY 2016 earnings guidance.
- DD says it now sees full-year EPS coming in at $3.25, compared with its prior guidance range of $3.15-$3.20 and analyst consensus estimate of $3.20.
- Q3 total sales rose 1% Y/Y to $4.92B, agriculture sales rose 2% to $1.12B, and sales from performance materials also increased 2% to $1.33B; both segments were helped by 4% higher volume.
- Savings from DD's cost cutting plan helped boost pretax profit margin in the company’s six business segments by 3.5 percentage points, with gains realized in each one.
- On the planned merger with Dow Chemical (NYSE:DOW), CEO Ed Breen says "in the event that [EU] regulators in those jurisdictions use their full allotted time, closing would be expected to occur in the first quarter of 2017."
Wed, Oct. 19, 1:56 PM
- DuPont (DD +0.4%) is initiated with a Buy rating and $78 price target at Nomura, which expects strong earnings potential from the proposed combination with Dow Chemical (DOW +0.6%).
- Nomura expects the DuPont-Dow merger to generate above-trend growth in earnings and free cash flow for the next three years, which it considers "exceptional in a macro environment where growth is scarce."
- DuPont management’s integration plan through 2019, which centers on aggressive cost cuts and assets spinoffs and sales, makes the shares especially compelling, the firm says, estimating the moves should result in equity value compounding at 16% annually during 2017-19.
Tue, Oct. 18, 8:27 AM
- BASF (OTCQX:BASFY) faces a prolonged shutdown of production units at its chemical plant complex and headquarters in Ludwigshafen, Germany, where yesterday's explosion and fire killed two employees and injured dozens.
- BASF says two steam crackers at the plant remain halted and another 20 facilities are either stopped or only partially working.
- Analysts say some production units could be down for months as investigations by the company and government agencies take place, possibly tightening European ethylene markets in 2017, which could benefit Dow Chemical (NYSE:DOW) and LyondellBasell Industries (NYSE:LYB).
- Baader Bank analyst Markus Mayer says the closing of the two steam crackers mostly will impact BASF's basic chemicals division, which makes up ~21% of sales and 30% of EBITDA; he analyst estimates that 6% of annual earnings could be directly impacted by the fire, with as much as 3% of EBITDA at risk because the shutdown may last more than a quarter.
Mon, Oct. 10, 2:31 PM
- Dow Chemical (DOW +0.8%) is upgraded to Buy from Neutral with a $62 price target, raised from $53, at UBS, which believes the merger with DuPont (DD +0.6%) could gain regulatory approval and that the stock is now too cheap to ignore.
- The firm already factors in $3B in potential cost savings from the deal but now substantially raises its free cash flow estimates in the materials to reflect ~20% decline in capex from pro forma 2016-18.
- UBS also revisits its sum-of-the-parts estimate based on the valuation of each spinoff company likely to come out of the combined new company to reflect a more comprehensive peer set, which it uses to benchmark vs. the S&P 500.
Mon, Oct. 3, 2:18 PM
- Dow Chemical (DOW +1.6%) and DuPont (DD +1.8%) are both upgraded to Buy from Neutral at Citigroup, which calls the combined company "the stock to own in 2017" if their merger deal is completed.
- Citi cites the companies' "massive" cost-cutting opportunity after the merger goes through as well as the potential for upside to the stated $3B synergy target; from the split-up lean and agile companies, the firm expects an incremental $1B synergy above the companies' target, adding $0.30/share to proforma combined earnings.
- The firm raises its price target on Dow to $59 from $55 and on DD to $76 from $72.
Mon, Oct. 3, 8:14 AM
- The European Commission have resumed their investigation into the $130B merger of Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) after the companies provided key data, and will decide by Feb. 6 whether to approve the deal, Reuters reports.
- The EU antitrust regulator opened a full investigation into the case in August, concerned that the deal could reduce competition in crop protection, seeds and certain petrochemicals.
Tue, Sep. 27, 2:28 PM
- The petrochemical joint venture between Dow Chemical (DOW +0.7%) and Kuwait's state-owned Equate Petrochemical has hired banks for a potential bond issue of as much as $3B, Bloomberg reports.
- Lenders including HSBC Holdings, NBK Capital, JPMorgan Chase and Citigroup are arranging the sale of dollar-denominated securities, according to the report.
- Equate raised $5B via a loan in June and last year borrowed a $6B bridge loan to acquire MEGlobal from Dow.