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By Noel Randewich
NEW YORK, March 26 (Reuters) - Dow Inc will replace DowDuPont Inc in the Dow Jones Industrial Average following the chemical corporation’s breakup into three smaller companies, S&P Dow Jones Indices said on Tuesday.
The rearrangement of the widely followed blue-chip index of 30 companies would happen on April 2 before the U.S. stock market opens, S&P Dow Jones Indices said in a statement.
DowDuPont, formed by the $130 billion merger of chemical giants Dow Chemical and DuPont in 2017, is in the process of splitting itself up into three companies called Dow, DuPont and Corteva Agriscience.
Dow Inc will also join the S&P 500 on April 2, replacing Brighthouse Financial Inc, 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.
Known for its inclusion of large U.S. companies as well as its relatively few members compared to other barometers, the Dow has changed components roughly every two years over the past 20 years. The most recent such move came last June, when longtime member General Electric Co was replaced by Walgreens Boots Alliance Inc (Additional reporting by Caroline Valetkevitch; Editing by Richard Chang)