• Home
  • About Us
  • Contact US !
Incitasecurity
  • Home
  • Finance
  • Gadgets
  • Education
  • Latest Internet News
  • Technology
  • Social Media
  • Blogging
  • CrossFit
  • UpComing Car
No Result
View All Result
  • Home
  • Finance
  • Gadgets
  • Education
  • Latest Internet News
  • Technology
  • Social Media
  • Blogging
  • CrossFit
  • UpComing Car
No Result
View All Result
Incitasecurity
No Result
View All Result
Home Finance

Desperate Dow-DuPont megamerger bad for stocks

anik by anik
January 6, 2016
in Finance
0
VIEWS
Share on FacebookShare on Twitter

Traders work below a board displaying the Dow Chemical logo on the floor of the New York Stock Exchange in New York on Dec. 9, 2015.

Dow Chemical and DuPont are in advanced discussions for a megamerger, a tie-up that sent shares of companies in the materials sector soaring.

But these gains may be short lived, if history is any guide. Big deals in older, more basic industries normally spell doom for the other companies in that space.

What’s more, this deal may signal that these two giants believe oil and commodity prices are going to stay under pressure for the foreseeable future, investors said.

“This potential acquisition suggests Dow and DuPont see commodity price pressure as more structural than cyclical, pushing them to attempt to break up their businesses,” said Axiom Capital’s Gordon Johnson in an email.

While Dow and DuPont use petroleum to make chemicals and plastics, the cheaper input costs are apparently not enough to outweigh deflation for all commodities. A slowing Chinese economy can’t help, either.

Investors said this is clearly not a merger born out of strength.
[“source -cncb”]

Tags: Desperate Dow-DuPont megamerger bad for stocks
Previous Post

Low oil prices favoured Indian economy: FM Arun Jaitley

Next Post

Energy stocks have hit a bottom — here’s why: Trader

Next Post
Energy stocks have hit a bottom — here’s why: Trader

Energy stocks have hit a bottom — here’s why: Trader

Recent Post

  • Revitalize Your Fitness Journey with Acid Bath CrossFit: Embrace the Intensity and Achieve Peak Performance
  • Unleashing Festive Fitness: The CrossFit 12 Days of Christmas Workout Extravaganza
  • Unleash Your Inner Strength: Acid Bath CrossFit for Ultimate Fitness Transformation
  • Crushing the 23.1 CrossFit Open: Unleashing Your Winning Strategy
  • Unleashing Strength and Power: The Inspiring Journey of Paige Powers in CrossFit
  • Unleashing Strength and Endurance: Helen’s CrossFit Challenge
  • Mike Wassmer: Rising Star of CrossFit Dominates the Fitness Arena
  • Unleash Your Inner Athlete: Diane CrossFit Workout for Strength and Stamina
  • 5 Challenging CrossFit WODs with Kettlebell Swings to Boost Your Fitness Level
  • Power Up Your Game with CrossFit Football Workouts: A Comprehensive Guide
Incitasecurity

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

Navigate Site

  • Home
  • About Us
  • Contact US !

Follow Us

No Result
View All Result
  • Home
  • Finance
  • Gadgets
  • Education
  • Latest Internet News
  • Technology
  • Social Media
  • Blogging
  • CrossFit
  • UpComing Car

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.