Dow Confirms Plans to Shed Three Units worth $2 Billion
Dow Chemical has confirmed recent reports that it planned to shed three more businesses toward its target of divesting assets worth $4.5-6 billion by 2015.
In late August, reports surfaced that the largest US chemical producer - pressured by activist shareholder Daniel Loeb - had hired investment bankers including Morgan Stanley to sell two businesses, Angus Chemical Co based in Buffalo Grove, Illinois, and the AgroFresh unit based at Philadelphia.
At the beginning of October, Dow said it had already completed $1.3 billion in divestments and was "actively marketing Angus and AgroFresh, as well as Sodium Borohydride. The transactions are due to close in early 2015.
The chemical giant also has sold part of its North America rail car fleet, for nearly $450 million. In the second quarter of 2015, Dow expects to have signed agreements with buyers of its carved-out Chlor-Alkali/Chlor-Vinyl, Global Chlorinated Organics and Epoxy units.
In other news, the group said it will take full control of Univation Technologies, its polyethylene catalyst joint venture joint venture with ExxonMobil Chemical. The jv was founded in 1997 between the Exxon group unit and Union Carbide, later owned by Dow. Terms of the deal were not announced.
Loeb, who owns the hedge fund Third Point has been urging Dow to separate its commodity and specialty chemicals businesses.
