Wilmington, Delaware and Des Moines, Iowa
May 21, 1999DuPont and Pioneer
Hi-Bred International, Inc. today announced that they have been notified by the U.S.
Department of Justice that the agency has completed its review of DuPont's proposed
acquisition of the 80 percent of Pioneer not currently owned by DuPont.
The completion of the U.S. antitrust review is another significant step in the process
that will result in completion of the merger. This transaction will be another major step
in DuPont's life sciences strategy and will strengthen and accelerate its capacity to
discover, develop and commercialize a new generation of products across the value chains
for food and feed crops, food ingredients, industrial applications and nutrition science.
Under the terms of the merger agreement, Pioneer shareholders will receive $40 per share,
with 45 percent of the shares receiving cash and 55 percent of the shares receiving DuPont
stock. Pioneer shareholders will have certain rights to elect which form of consideration
they receive. The merger is expected to close this summer. The total equity value of the
transaction is estimated to be approximately $7.7 billion for the 80 percent of Pioneer
not currently owned by DuPont.
In September 1997, DuPont and Pioneer formed a research alliance and in January 1998, a
separate joint venture company -- Optimum Quality Grains, L.L.C. DuPont also invested $1.7
billion in Pioneer to acquire a 20 percent equity interest.
Pioneer Hi-Bred International, Inc. is the world's leading supplier of agricultural
genetics and is the leading developer and integrator of agricultural technology.
Headquartered in Des Moines, Iowa, Pioneer develops, produces, and markets a full line of
seeds, forage and grain additives and services to grain and livestock producers, grain
processors and other customers worldwide.
DuPont is a science company, delivering science-based solutions that make a difference in
people's lives in food and nutrition; health care; apparel; home and construction;
electronics; and transportation. Founded in 1802, the company operates in 65 countries and
has 92,000 employees.
Company news release
N1820 |