Dow or DuPont Can Walk Away From Merger Deal for $1.9 Billion Termination Fee, SEC Filings Show

Either partner in the Dow/DuPont merger agreement (see 1512110008) can walk away from the deal under various conditions if it pays the other partner a termination fee of $1.9 billion in cash, it was disclosed in documents filed Friday at the SEC. Either company also can unilaterally extend the closing to June 2017 if the deal hasn’t been consummated by March 2017, the documents said. Dow and DuPont have said they expect the deal to close in 2016's second half and that Specialty Products, incorporating both companies’ display materials businesses, will be one of three publicly traded spinoffs, to follow completion of the transactions by about 18-24 months.