When S & P is set for Dow Jones indexes
(Ticker: DWDP) in the
Dow Jones Industrial Average
With its component Dow Inc., the index loses the influence of a longtime member, DuPont. In some form DuPont was in the venerable 30-share index since 1935. The move was announced on Tuesday.
with egg. DuPont de Nemours and Co. founded DowDuPont in August 2017 and the new company replaced DuPont at the DJIA.
DowDuPont is planning a tripartite division, which will commence next week with Dow's spin-off into a separate company, followed by the spin-off of an agricultural corporation named Corteva in June. The remaining company is called DuPont.
The move is a confirmation of the new Dow, which will have sales of nearly $ 50 billion, about double that of the new Dupont.
A large part of Dow's business will be in the commodities sector, while DuPont will do so mostly specialty chemicals and likely have a higher valuation relative to earnings.
Dow will operate in three main segments: packaging and specialty plastics, polyurethanes and industrial solutions, and performance materials and coatings. It produces plastics and other products contained in a range of packaging, as well as resins and other chemicals found in paints.
While there has been a mix of assets between Dow and DuPont since the merger, the chemical companies, which will emerge independently, are similar to the original one.
DowDuPont, whose shares today traded at $ 52.50 (down 1.3%), will be offering one Dow share for every three DowDuPont shares on Monday, April 1, while Dow will be trading on the second. The Index Committee of S & P Dow Jones Indices essentially decided that the new Dow is more representative of the chemical and materials sectors than the new DuPont.
"We looked at the different parts and how they fit into the index and the economy," says David Blitzer, head of the Index Committee at S & P Dow Jones Indices, Barrons . "We have not renounced one name or another."
Based on the timing of emissions trading, Dow, with a market value of approximately $ 38 billion, will be one of the smaller components of the DJIA. Dow is trading at $ 49.66 on Wednesday morning, up 1.7%. It is expected that New DuPont has a higher market value than Dow.
Please contact Andrew Bary at [email protected]