Dow-DuPont merger closes Thursday. How will Pioneer, Iowa fare?

With Dow-DuPont's $150 billion merger closing Thursday, the newly combined business's first spin-off could be the agribusiness formed by Johnston-based seed giant Pioneer and Indianapolis' Dow AgroSciences, experts say. "It makes sense, from my view, that agriculture" could be the focus of the first company formed, said Seth Goldstein, an analyst at Morningstar in Chicago. Here's why: Dow Chemical Co. and DuPont, which initially proposed creating three independent, publicly traded spin-offs — agribusiness, material science and specialty products — are facing intense investor pressure to create more, smaller companies. "There’s less debate about what would fall into ag and what doesn’t," said Matt Arnold, an analyst at Edward Jones in St. Louis. "For the most part, that should be pretty straightforward." Dow and DuPont have yet to say which company will first leave the nest. Investors are pushing for as many as six companies. In 2016, Iowa economic development leaders reached a deal with Dow-DuPont that will help cement its 2,600 employee workforce in the state. Most of those jobs are located in Johnston. Altogether, the company will receive $17 million in incentives, including $14 million in state tax credits and a $2 million forgivable loan.