Dow Inc. has made its debut on the the Dow Jones Industrial Average, replacing DowDuPont Inc., as the Midland, Mich.-based giant breaks up into three smaller companies.
The company formally spun off from DowDuPont Inc. on April 1 and on April 2 began trading on the New York Stock Exchange under the trade symbol DOW. CEO Jim Fitterling rang the bell to start trading on April 2.
“Today marks the beginning of a new and exciting chapter for Dow,” CEO Jim Fitterling said in an April 1 news release. “The changes we have made to Dow's portfolio, cost structure and mindset are significant. The new Dow is a more focused and streamlined company with a clear playbook to deliver long-term earnings growth and value creation for all stakeholders.”
The company added that Dow is positioned to drive growth for its customers, “leveraging three advantaged building blocks — ethylene, propylene and silicones — to power one of the deepest chemistry sets in the industry.”
DowDuPont, formed by the $130 billion merger of chemical giants Dow Chemical Co. and DuPont Co. in 2017, is splitting into three companies: Dow Inc., DuPont and Corteva Agriscience.
Corteva is expected to officially spin off in June.
Dow Inc. will also join the S&P 500 on April 2, replacing Brighthouse Financial, S&P Dow Jones Indices said in a separate statement.
Replacing DowDuPont with Dow will maintain the benchmark's exposure to the materials sector, and its price weight within the Dow Jones Industrial Average will be similar to DowDuPont's before its breakup, S&P Dow Jones Indices said.