Dow to sell 40% stake in some US Gulf Coast infrastructure assets for $2.4 billion

Published 12/09/2024, 07:08 AM
Updated 12/09/2024, 07:11 AM
© Reuters. FILE PHOTO: The Dow Chemical logo is displayed on a board above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S. on December 22, 2015. REUTERS/Lucas Jackson/File Photo
DOW
-

(Reuters) - Dow said on Monday it would sell a 40% stake in some U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management for $2.4 billion as it looks to focus more on its core chemicals business.

Shares of Dow were up about 5% at $44.14 in premarket trading after the company said it would receive up to about $3 billion in cash proceeds if Macquarie decides to increase its equity share to 49% within six months of closing the deal.

Dow said the transaction was part of its actions to evaluate its ownership of non-product producing assets across its global portfolio, including power and steam production and pipelines.

In October, the chemicals firm began a review of some of its European assets, which account for nearly 20% of its sales in the EMEAI region.

The new partnership, Diamond Infrastructure Solutions, will be an infrastructure provider to Dow and other industrial customers at its five locations in Texas and Louisiana, the company said in a statement.

© Reuters. FILE PHOTO: The Dow Chemical logo is displayed on a board above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S. on December 22, 2015. REUTERS/Lucas Jackson/File Photo

The transaction is expected to close in the first half of 2025.

Last month, Dow was replaced by Sherwin-Williams (NYSE:SHW) in the Dow Jones Industrial Average, as the company grapples with weak demand recovery and competitive regulatory policies.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.