DowDuPont split set to unlock value

Article Excerpt

Chemical giant DowDuPont continues to plan for its split into three new businesses, following last year’s big merger. The stock has suffered in the past few months over concerns trade disputes could slow global growth. Cyclical industrial manufacturers, such as automakers, are the company’s major customers and they depend on that growth. However, DowDuPont’s upcoming breakup should help unlock significant value for its shareholders. DOWDUPONT INC. $57 (New York symbol DWDP; Manufacturing sector; Shares outstanding: 2.3 billion; Market cap: $131.1 billion; Takeover Target Rating: Lowest; Dividend yield: 2.7%; www.dow-dupont.com) began trading on September 1, 2017, following the merger of Dow Chemical and DuPont. It’s now the world’s second-largest maker of chemicals. Dow Chemical was founded in 1897 by chemist Herbert Henry Dow; DuPont was founded in 1802 by Éleuthère Irénée du Pont The merged company is the world’s second-largest chemical producer after Germany’s BASF Now operates in 160 countries Revenue for the combined company rose 12.2%, to $79.5 billion in 2017 from $70.9 billion in 2016. (Note:…