US Dow Chemical adds three businesses to planned divestments
Stefan Baumgarten
02-Oct-2014
HOUSTON
(ICIS)–Dow Chemical is “actively marketing” its Angus
Chemical Company, Sodium Borohydride and AgroFresh
businesses, the US-based chemicals major confirmed on
Thursday in an update on its divestment plans.
Selling those three businesses is part of Dow
Chemical’s plan to divest $4.5-$6.0bn of
non-strategic businesses and assets by 2015. To date, Dow
completed divestitures totalling $1.3bn. Proceeds
from the full divestment programme are now expected to
come in at the higher end of the $4.5-$6.0bn range, the company said.
Dow Chemical said that it expects to
sign transactions for the three businesses by the end of
2014. Collectively, the three businesses are expected to
yield proceeds of more than $2bn.
Dow also said that it completed the sale of “a substantial
portion” of its North America railcar fleet as it is moving
to a lease structure. The sale of the railcar fleet generated
$450m in cash so far.
Furthermore, Dow continues “to make solid progress” on the
planned carve-out of its US Gulf Coast-based chlor-alkali,
chlor-vinyls and chlorinated organics and epoxy businesses,
it added.
“Dow is now actively working to stand up the carve-out within
a separate structure, with more details forthcoming,” it
said.
“The carve-out is receiving strong interest from the market
and firm indications of interest are expected before year
end, with signed agreements expected in early 2Q15 [second
quarter of 2015],” it added.
Last month, Dow said that it may consider a Reverse Morris Trust
transaction for the carve-out.
“Through the actions we have taken and the plans in progress,
we will have divested more than $14bn in non-strategic
businesses since 2009, while at the same time adding $18bn in
revenue via acquisitions and organically through targeted
R&D [research and development], thus proving our complete
focus on further accelerating Dow’s continued commitment to
going deeper into attractive end-markets within its
integrated value chains and products – all while enhancing
return on capital and driving TSR [total shareholder return]
even higher,” said Dow’s CEO, Andrew Liveris.
Dow also said that under an agreement reached with
ExxonMobil it will become sole owner of the two firms’
50:50 Univation Technologies joint venture.
Univation is a licensor of polyethylene (PE) technologies,
and it produces PE catalysts.
Additional reporting by Al Greenwood
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