US Dow Chemical agrees to sell its chlorine business to Olin
The deal was agreed using a structure known as a “Reverse Morris Trust” which means that the deal will not be liable for taxes. Dow will receive $2 billion in cash and cash equivalents while Olin will assume $800 million in liabilities. Dow will also receive $2.2 billion worth of Olin shares, which it plans to redistribute to its investors. Through this transaction, Dow has already exceeded their target of raising $7 billion to $8.5 billion from selling assets.
As per the agreement, Olin will be the owner of Dow’s chlor-alkali and vinyl assets on the U.S. Gulf Coast, its global chlorinated organics business and the global epoxy business while Dow will become one of Olin’s largest chlorine customers. However, Dow will maintain its chlorine businesses in Europe and Brazil as well as some chlorine facilities integrated into one of its polyurethane assets in Texas.
In a separate agreement, the two companies signed a 20-year agreement which requires Dow to supply ethylene to Olin Corp for the manufacture of PVC.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Turkey’s PP and PE markets propelled to a firm start to H2 despite vulnerable conditions
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?
- US PVC offers in Egypt rise steadily but resistance grows in tandem
- PE buyers’ resistance grows in SEA; duty-free origins more competitive than Mid-East
- Polymer demand cools in Turkey: Is price correction ahead for PP, PE and PVC?
- China’s rising PET trend takes a pause, but longer-term outlook remains firm
- Uptrend in China’s import PP market continues but cautious mood returns
- Hikes in Asia July PVC offers baffle some buyers, further rally under discussion
- Optimism is rising on resurgent demand in European polymer markets