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Dow Chemical closes split-off of part of chlorine value chain

Staff writer ▼ | October 6, 2015
Dow Chemical closed the split-off transaction, resulting in the separation of a significant part of its chlor-alkali and downstream derivatives businesses and merger of these businesses with Olin Corporation to create an company with revenues approaching $7 billion.
Dow Chemical
Split-off   A company with revenues approaching $7 billion
Transaction is highly accretive to Dow and Dow shareholders, with a tax-efficient consideration of greater than $4.6 billion or taxable equivalent value in excess of $7 billion to Dow and Dow shareholders.

Dow reduces outstanding shares of its common stock by more than 34 million shares; returns $1.5 billion in value to shareholders through the split-off, effectively completing $6.5 billion of its $9.5 billion share repurchase program.

Dow exceeds divestiture target – reaching $12 billion and further advancing the company’s portfolio shift to select high-performance sectors.

Included are Dow’s U.S. Gulf Coast Chlor-Alkali and Vinyl, Global Chlorinated Organics, and Global Epoxy business units, in addition to 100 percent interest in the Dow Mitsui Chlor-Alkali joint venture.

The closing of the merger followed the expiration of the related exchange offer and the satisfaction of certain other conditions.

As a result of the exchange offer, Dow will reduce outstanding shares of its common stock by more than 34 million shares or nearly 3 percent of outstanding common shares.

The transaction is highly accretive to Dow and Dow shareholders, with a tax-efficient consideration of greater than $4.6 billion on an after-tax basis and taxable equivalent value in excess of $7 billion.

With this transaction, Dow exceeds its prior stated goal to divest $7 billion to $8.5 billion of non-strategic businesses and assets by mid-2016, with the total now approaching more than $12 billion in pre-tax proceeds.


 

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