Chemical industry giants Dow Chemical Co. and DuPont Co. have agreed to merge in a $130 billion all-stock deal that some observers expect to catalyze further consolidation within the industry.
The new company will be called DowDuPont. After 18-24 months, the joint company plans a three-way split into separate companies specializing in agriculture, material science and specialty products.
In the agricultural sector, the merger could set off a flurry of takeover bids, with Swiss chemical maker Syngenta believed to be a likely target.
Some analysts have suggested that Creve Couer-based Monsanto, which repeatedly tried to acquire Syngenta earlier this year, could make another run at the Swiss company. However, Monsanto said Friday it wouldn’t act rashly in response to consolidation in the market.