(Reuters) – Dow stated on Monday it could promote a 40% stake in some U.S. Gulf Coast infrastructure belongings to a fund managed by Macquarie Asset Administration for $2.4 billion because it appears to be like to focus extra on its core chemical compounds enterprise.
Shares of Dow have been up about 5% at $44.14 in premarket buying and selling after the corporate stated it could obtain as much as about $3 billion in money proceeds if Macquarie decides to extend its fairness share to 49% inside six months of closing the deal.
Dow stated the transaction was a part of its actions to guage its possession of non-product producing belongings throughout its world portfolio, together with energy and steam manufacturing and pipelines.
In October, the chemical compounds agency started a evaluate of a few of its European belongings, which account for practically 20% of its gross sales within the EMEAI area.
The brand new partnership, Diamond Infrastructure Options, can be an infrastructure supplier to Dow and different industrial clients at its 5 areas in Texas and Louisiana, the corporate stated in an announcement.
The transaction is anticipated to shut within the first half of 2025.
Final month, Dow was changed by Sherwin-Williams within the Dow Jones Industrial Common, as the corporate grapples with weak demand restoration and aggressive regulatory insurance policies.
(Reporting by Tanay Dhumal in Bengaluru; Enhancing by Anil D’Silva)
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