scorecardThe $130 billion Dow-DuPont merger faces several major challenges
  1. Home
  2. stock market
  3. The $130 billion Dow-DuPont merger faces several major challenges

The $130 billion Dow-DuPont merger faces several major challenges

The $130 billion Dow-DuPont merger faces several major challenges
Stock Market3 min read

dow dupont

AP Photo/Richard Drew

CFO Insider is a daily newsletter from Business Insider that delivers the top news and commentary for chief financial officers and other finance experts.

Dow-DuPont merger faces integration hurdles (Wall Street Journal)

The $130 billion merger of Dow Chemical and DuPont is expected to be complicated by the fact that neither company will dominate the new entity.

"It's easier if there's one dominant partner," Mitchell Marks, an organizational psychologist and professor of leadership at San Francisco State University, tells The Wall Street Journal.

Marks argues that "employee infighting" increases company politics when there is more "wiggle room" caused by a lack of authoritative control.

"One of two things will happen - either they will be good children and play nice or they will become highly political animals," Marks tells The Journal.

The companies are targeting $3 billion in cost savings, which is likely to stress out many employees and lead to voluntary departures. "DuPont said it plans to cut about 10% of its global workforce before the actual merger," The Journal reports.

The deal is further complicated by international considerations and a planned three-way split. Following the merger, which is expected to be completed in the second half of 2016, the companies will split into three separately traded companies that focus on agriculture, material sciences, and specialty products.

"You have to deal with different customer bases, different regulation, and different supply chains," Neil Dhar, partner and US capital markets leader for PricewaterhouseCoopers LLP, tells The Journal.

The smartest choice one CFO ever made with her money is something a lot of people can do (Business Insider)

Wealthfront CFO Ashley Fieglein Johnson has a simple habit that helps her save money and increase her wealth: She lives below her means.

"I never spent to the level I was earning," she told Business Insider. "I always stashed away bonuses and part of my checks into investment accounts and savings accounts."

The self-made millionaire said her decision to save responsibly has allowed her to take calculated risks that have the potential to increase her wealth.

"The few instances where I did go 'underwater' were the times when I was investing in business, real estate, or other similar opportune investments," she said. "I could afford to participate in these types of ventures because I always had savings to fall back on."

There's a big gap between what CFOs think employees want and what they actually want (Business Insider)

A recent survey by specialized staffing firm Robert Half found that 40% of CFOs are more open to negotiating nonmonetary perks to recruit and retain top workers than they were a year ago.

However, what CFOs believe employees want and what employees actually want can be quite different.

CFOs underestimate the value employees place on more vacation days, telecommuting options, and flexible schedules, and they overestimate employees' desire for better health and wellness benefits, according to the survey.

NOW WATCH: 5 signs you're going to be extraordinarily successful