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Morgan Stanley analyst Vincent Andrews questions $DD about its concerns for credit in the Ag segment during 2H17. EVP Agriculture James Collins says that the company is not seeing any kind of bad debt rates that are above anything normally seen. But due to the lack of credit, growers are delaying a lot of their purchase decisions.
$DOW + $DD = $DWDP – The chemical giants Dow and DuPont, after clearing all the major regulatory hurdles, said that the historic merger will close on Aug 31, 2017. Dow and DuPont shares will stop trading from NYSE on Aug 31, 2017, after the market closes. Beginning Sept 1, the newly formed DowDuPont will be trading under the new ticker $DWDP.
It’s DuPont-Dow formula! One plus one will be three, not two. - With the intention to split into three independent companies after the merger, the chemical giant $DD, reported a rise in revenue for the second quarter of 2017, up 5% to $7.4Bil. The growth was mainly driven by 6% volume growth and partially offset by 1% decline in local price.
"Break up, recombine. Break up, recombine." After unexpectedly leaving the 215-year-old company in Oct. 2015, Ellen Kullman, Ex-CEO of $DD commented on DuPont-Dow merger at 2016 Fortune’s annual Most Powerful Women’s conference. $DD, which is delaying the merger for the 3rd time, reported 2Q17 earnings of $0.97 per share, down 16% from a year ago.
$DD declared Q3 common stock dividend of $0.38 per share, payable Sept 29, 2017, to stockholders as on July 31, 2017. Regular quarterly dividends of $1.12-1/2 per share on the $4.50 series preferred stock and $0.87-1/2 cents per share on $3.50 series preferred stock also were declared, both payable Oct 25, 2017, to stockholders as on Oct 10, 2017.
$DOW and $DD provided update on status of anticipated merger of two companies. The Boards have jointly begin review and have engaged McKinsey & Co. to assist in this assessment. The lead independent directors of each company are working together to oversee the process. The DowDuPont Board is expected to review the results soon after merger closes.
$DD and $DOW reached a proposed agreement with the Antitrust Division of the United States Department of Justice (DOJ) that will permit the companies to proceed with their proposed merger of equals. The companies reaffirmed their expectation to close the merger in August 2017, with the intended spin-offs to occur within 18 months of closing.
$DD said the waiting periods for the approval of its transactions with FMC Corporation under the Hart-Scott-Rodino Antitrust Improvements Act have expired without a request for additional information by the US Department of Justice. The expirations satisfy certain conditions to the closing of the transactions with FMC, which is expected in 4Q17.
$DD and $DOW said Brazil's Administrative Council for Economic Defense (CADE) has granted conditional regulatory approval of their proposed merger of equals. The companies continue to anticipate closing the merger between Aug. 1, 2017 and Sept. 1, 2017, with the intended spins to occur within 18 months of closing.
$DD and $DOW said China's Ministry of Commerce (MOFCOM) has granted conditional regulatory approval of their proposed merger of equals. The companies reaffirm their expectation for closing of the merger to occur between Aug. 1, 2017 and Sept. 1, 2017, with the intended spin-offs to occur within 18 months of closing.
$DD stated that on tracking the internal cost reduction actions for 2017, the company is tracking well against the goals it has set. In 1Q17, the company's total fixed cost was $26MM below the year ago. Additionally, $DD added that the $26MM had some cost incurred in it that were not anticipated at the time of the guidance last year.
$DD said that on the integration of FMC's nutrition business with the company, the company plans to close the merger in Aug. 2017 and in 4Q17, around Nov. 2107, $DD will close the FMC transaction. The company added that synergies will be lower than normal as it is planning on adding additional R&D capability to the FMC part of the platform.
$DD's agriculture sales for 1Q17 rose 4% on benefits from local price and volume. Pricing was driven by double-digit gains in Latin America, launch of new soybean varieties in North America and higher sunflower seed sales in Europe. Volume was driven by change in timing of seed deliveries and increased insecticide and sunflower seed volumes.