Union Carbide changing nameLEONARD GRAY / L’Observateur / August 11, 1999TAFT – A landmark along River Road for more than 35 years, the Union Carbide plant will change names to Dow Chemical, following the announcement last week of the merger of the two giant corporations.
Published 12:00 am Wednesday, August 11, 1999
Union Carbide spokesman Stan Dufrene said impact to the local facility is “too early to tell,” but he assured there will be no immediate impact on the facility.
“There’s always going to be rumors,” Dufrene said. However, changes inpersonnel are more likely to be high on the corporate level. “There’s moreof a potential for duplication at the corporate levels,” he said.
The merger of the two corporations, valued at $11.6 billion, was definedin a press release as a tax-free, stock-for-stock transaction. UnionCarbide shareholders will receive 0.537 shares of Dow stock for eachsingle share of Carbide stock.
The merger combines the resources of two of the international chemical industry’s largest and most technologically-advanced companies.
Combined annual revenues are estimated at $24 billion, operationg income of $3 billion, a combined market capitalization of $35 billion and assets of more than $30 billion.
The merger establishes the world’s second largest chemical company, operating in 168 countries, employing more than 40,000 people and ranking at number 50 on the Fortune 500 list.
“This transaction is a giant step in our strategy to transform Dow into the world’s most productive, best value-growth company in the chemical industry,” said William Stavropoulos, president and chief executive officer of Dow.
William Joyce, chairman and chief executive officer of Union Carbide, added, “This is the right move at a good time. In a consolidating chemicalindustry where fewer, more powerful companies will exist, the combination of Dow and Union Carbide now sets the gold standard for the industry.”Dufrene likened the merger as “a very good marriage,” with each partner bringing considerable assets and resources to the relationship.
“Union Carbide and Dow have always been committed to the area,” Dufrene added. “From a philosophical perspective, they’re alike in a number ofways.”
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