DowDuPont (DWDP 36.76, +0.17, +0.47%) was created in August 2017 when Dow Chemical and DuPont merged to create the world's largest chemical company. The company later decided to split the business into three independent companies, each of which will trade publicly. This process is finally getting underway.
The plan to separate was announced in February 2018. as follows:
- Agriculture Division to be named Corteva Agriscience
- Materials Science Division will be called Dow, and will retain the Dow diamond as its brand
- Specialty Products Division will be the new DuPont
Last night, DWDP announced that it has completed the separation of its Materials Science Division through the spin-off of Dow, which begins "regular way" trading today on the NYSE under the symbol "DOW." DowDuPont shareholders received one share of Dow for every three shares of DowDuPont common stock they held as of the close of business on March 21. DowDuPont stockholders will also receive cash in lieu of fractional shares of Dow stock.
In addition, DWDP announced that it remains on track to complete the previously announced separation of its Agriculture Division (Corteva Agriscience) on June 1, 2019. Subsequent to the Corteva Distribution, DowDuPont would hold the Specialty Products Division and be renamed "DuPont."
Bottom Line: If you own DWDP shares, do not fret about the 32% decline in the stock today. That was caused by the Dow spin-off. You now likely own shares in Dow as well. The same thing will happen when Corteva gets spun-off in a couple of months. These are some big changes for DWDP. In case you were wondering, certain product names will change at separation, but many products within each intended company will continue to be sold under their current, widely known brand names.