Company in talks for merger with competitor - WNEM TV 5

Company in talks for merger with competitor

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MIDLAND, MI (WNEM) -

One of Mid-Michigan's biggest employers, Dow Chemical, is in talks to merge with another chemical company called DuPont.

“You have the two oldest, most historic chemical companies the iconic chemical companies in the United States and DuPont is more than 200 years old and Dow is almost 120 years-old,” said Tim Nash.

Nash is an economics professor at Northwood University. He said the biggest reason for the merger is a slow economy.

"The economy is sluggish and investors are looking for rates of return," Nash said. "The Dow Jones industrial average this year is flat it hasn't grown at all from where it was in 2014. So there's a lot of pressure on companies to do things to increase their stock value."

And Dow's stock value could at least double if it merges with DuPont.

With the market value of both Dow Chemical and DuPont at nearly $60 billion dollars, together the companies would be worth about $120 billion.

According to the Wall Street Journal, 2015 has been the biggest year ever for mergers. Nash said a new deal between DuPont and Dow could be one of the largest yet.

"Roughly, the last year and a half we've had $4.5 trillion in mergers or acquisitions of companies and this will be one of the biggest and one of the strongest if it takes place," Nash said.

Nash said if Dow leaves Mid-Michigan, it could have a devastating effect on our area. But he said Dow executives so far have shown a strong commitment to Midland.

"It's too early to tell," Nash said. "It could mean job losses, it could mean job gains, but I think it's really important to look at what's happening over the next week or so."

We reached out to representatives at Dow, but they declined to comment.

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