US Dow to spend cash on debt, shareholders instead of M&A

02 February 2012 18:03  [Source: ICIS news]

HOUSTON (ICIS)--US-based Dow Chemical will forego mergers and acquisitions (M&A), using its cash instead to pay off debt and to give to shareholders, the chief executive said on Thursday.

"Our firm priority is to generate cash and return cash to our shareholders,"  said Andrew Liveris, Dow CEO. He made his comments during an earnings conference call.

"Allow me to be very clear. We do not need M&A," Liveris said. "Our portfolio is in place and it is delivering growth."

He added: "The cheapest M&A I have is in house. We have so much organic growth opportunities, I don't need to go pay a premium for someone else's position.

"We have all of the positions we need. Clearly, clearly, we are very focussed on growing organically and returning excess cash to our shareholders," Liveris said.

If anything, Dow could divest some businesses.

"We also continue to look for opportunities to trim our portfolio of non-core and under-performing assets," Liveris said.

By: Al Greenwood
+1 713 525 2645

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