Article on why this information is important – huge milestone for the company’s prospects, even though it’s from 1999.
|
|
| Dow buying Union Carbide |
|
August 4, 1999: 7:41 p.m. ET
$11.6B deal would create top chemical firm; 2,000 job cuts planned |
|
NEW YORK (CNNfn) – Dow Chemical Co. agreed Wednesday to buy Union Carbide for about $11.6 billion in stock and debt, shoring up Dow’s standing as one of the world’s biggest chemical companies.
The deal marks the rapid consolidation underway involving chemical firms and vaults the combined company ahead of Germany’s BASF to second place in the global chemicals business, after DuPont, according to one industry measure.
Dow (DOW), which also trails industry leader DuPont (DD) in the U.S market, makes chemicals, plastics, herbicides and well-known consumer products such as Styrofoam insulation. It also was a one-time partner with Corning Inc. in an ill-fated silicone breast implants venture that has resulted in years of litigation.
Union Carbide (UK) is the fifth-largest U.S. chemical firm, producing specialty chemicals, polymers and solvents for the paint and coatings industry and is a major maker of plastics used in a range of products including soda bottles and garbage bags.
The deal, which is subject to regulatory approval, would give Dow shareholders 75 percent control of the new company, while shareholders in Union Carbide would hold the remaining 25 percent. The combined firm will be known as Dow Chemical and have headquarters in Dow’s hometown of Midland, Mich. The companies plan to slash about 2,000 jobs as part of their cost cutting efforts. |
|
http://money.cnn.com/1999/08/04/deals/dowchemical/
