Dow Chemical Co. and DuPont Co., two historic giants of U.S. industry, will join in an all-stock merger of equals that’s the first step in a plan to create three new businesses. The deal will lead to USD 3 billion in cost savings. The deal, the largest ever in the chemicals industry, will create a USD 130 billion company that combines products from both Dow and DuPont in the areas of agriculture, commodity chemicals and specialty products to create the new businesses. The agreement, which has been under consideration since at least February, comes after two years of pressure from activist investors who argued that shareholders of both companies would realize greater value if they were broken up. The new company, DowDuPont, will be owned 50-50 by the current shareholders of both companies. Dow Chief Executive Officer Andrew Liveris, 61, will become executive chairman. DuPont CEO Ed Breen, 59, will be CEO of the new company. DuPont said in a separate statement it plans its own round of efficiencies next year that include cutting 10% of a workforce that numbers about 63,000. Dow has about 53,000 workers. Investors will get one DowDuPont share for each Dow share, and 1.282 DowDuPont shares for each one of DuPont. The eventual breakup of DowDuPont into three independent, publicly traded companies through tax-free spin-offs is expected over 18 to 24 months following the completion of the merger in the second half of 2016. DowDuPont will have dual headquarters in Midland, Michigan, and Wilmington, Delaware. As well as the USD 3 billion of cost savings, the companies said the deal will create additional earnings of about USD 1 billion.