Better Prices for Specialty Chemicals or Better Profits?
A couple of weeks ago Dow Chemicals and DuPont completed their long awaited merger, and emerged with the resulting DowDuPont. With the merge of these two chemical giants, many have speculated what will be the overall impact on the chemical industry market. With anticipated spinoff businesses, it's hard to tell at this point. Certainly the two businesses will be able to serve more customer needs, but will the additional savings be passed on to the consumer in any meaningful way?
We hope so. But we aren't too optimistic. With little price transparency in the specialty and fine chemical markets, and greater control over prices, DowDuPont would have little incentive to pass on any substantial savings to its customers. If anything, it would claim added value by being able to supply many customer needs from an integrated platform.
Guess we will just have to wait and see how the three new spinoff companies operate!