The Dow Chemical Company Successfully Completes Sale of a Portion of its Dow AgroSciences’ Corn Hybrid Seed Business


 
 
05:55 12/02/2017

The Dow Chemical Company, a subsidiary of DowDuPont DWDP , announced the successful closing of the previously announced divestment of a select portion of its Dow AgroSciences' corn seed business in Brazil to CITIC Agri Fund for a purchase price of $1.1 billion. The sale is part of the required regulatory remedies of the DowDuPont merger transaction, which closed on August 31, 2017.

The divestiture scope includes four corn seed production sites and four research centers, along with a copy of the Dow AgroSciences’ Brazilian corn germplasm bank, certain commercial and pipeline hybrids, and the Morgan™ trademark.

The CITIC Agri Fund also received a license to the Dow Sementes trademark for 12 months. The Agriculture Division of DowDuPont will retain Dow AgroSciences’ Brazilian corn germplasm bank and the remainder of its corn seed production sites and research centers, commercial and pipeline corn hybrids and other related assets.

With the completion of this divestiture, the Agriculture Division of DowDuPont is moving forward with a comprehensive and balanced portfolio and a robust pipeline of innovative solutions across seed, crop protection, seed-applied technologies and digital agriculture.

The intended independent Agriculture Company will be a global industry leader, with a continued strong presence in Brazil, better positioned to serve growers around the world with a superior portfolio of innovative solutions, greater choice, and competitive price for value.

Last month, DowDuPont DWDP  announced that its Board of Directors had declared a fourth quarter dividend of 38 cents per share. DWDP  also announced that its Board had approved an initial $4 billion share repurchase program.

“Rewarding our owners over both the near- and long-term has been a top priority for both legacy companies, and it remains so for DowDuPont,” said Andrew Liveris, executive chairman of DowDuPont. “The Board considered many factors in making these decisions, following an approach that delivers benefits to both heritage Dow and DuPont shareholders.”

“We’re committed to returning cash to shareholders consistent with the heritage of both Dow and DuPont, and to preserving the financial flexibility to achieve the target capital structures to support the strong independent companies we intend to create,” said Ed Breen, chief executive officer of DowDuPont.

Under the share repurchase program, shares may be repurchased periodically in open market or private transactions. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of DowDuPont’s common stock, general market and economic conditions, applicable legal requirements and other business considerations.

DowDuPont DWDP  is a holding company comprised of The Dow Chemical Company and DuPont with the intent to form strong, independent, publicly traded companies in agriculture, materials science and specialty products sectors that will lead their respective industries through productive, science-based innovation to meet the needs of customers and help solve global challenges.


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