As a step toward divesting more than $1.5 billion worth of assets it no longer considers core businesses by mid-to-late 2014, Dow Chemical is selling its global polypropylene licensing and catalysts business to U.S. chemical producer W. R. Grace for $500 million. The chemical giant said in March that this was one of the activities earmarked for divestment.

The deal expected to close by the end of 2013 pending regulatory approval includes Dow's polypropylene catalysts manufacturing plant at Norco, Louisiana, along with customer contracts, licenses, intellectual property and inventory. Some 90 employees will transfer to Grace, which also has agreed to honor customer, licensing and supplier contracts and related agreements.

CEO Andrew Liveris said Dow's "accelerated strategy" is focused on narrowing its market participation and preferentially funding select growth businesses with strong competitive positions in attractive markets such as electronics, water, packaging and agricultural sciences. Further proactive divestments can be expected over the next 12 months, he noted.

Net proceeds from the divestment will be returned to shareholders as well as being pumped into debt reduction and used to fund growth initiatives, Dow said.