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Dow Inc. will replace DowDuPont in the Dow Jones industrial average following the chemical company's split into three smaller companies, the S & P Dow Jones Indices index said on Tuesday.
The reorganization of the blue-chip index largely followed by 30 companies would take place on April 2, before the opening of the US market, said in a statement the group S & P Dow Jones Indices.
DowDuPont, a $ 130 billion merger of chemical giants Dow Chemical and DuPont in 2017, is being split into three companies: Dow, DuPont and Corteva Agriscience.
Dow Inc. will also join the S & P 500 on April 2, replacing Brighthouse Financial, the S & P Dow Jones indices said in a separate statement.
Dow's replacement of DowDuPont will maintain the benchmark's exposure to the materials sector, and its weighting relative to Dow Jones' average industrial price will be similar to that of DowDuPont prior to its dissolution. said the S & P Dow Jones indices.
Known for its inclusion of large US companies as well as its relatively few members compared to other barometers, the Dow has changed components approximately every two years over the past 20 years. The most recent initiative of this type took place last June, when the long-time member of General Electric was replaced by Walgreens Boots Alliance.
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