Categories: Stock Market News

Dow to promote 40% stake in some US Gulf Coast infrastructure belongings for $2.4 billion


(Reuters) – Dow mentioned on Monday it will promote a 40% stake in some U.S. Gulf Coast infrastructure belongings to a fund managed by Macquarie Asset Administration for $2.4 billion because it appears to be like to focus extra on its core chemical substances enterprise.

Shares of Dow have been up about 5% at $44.14 in premarket buying and selling after the corporate mentioned it will obtain as much as about $3 billion in money proceeds if Macquarie decides to extend its fairness share to 49% inside six months of closing the deal.

Dow mentioned the transaction was a part of its actions to judge its possession of non-product producing belongings throughout its international portfolio, together with energy and steam manufacturing and pipelines.

In October, the chemical substances agency started a overview of a few of its European belongings, which account for almost 20% of its gross sales within the EMEAI area.

The brand new partnership, Diamond Infrastructure Options, shall be an infrastructure supplier to Dow and different industrial clients at its 5 areas in Texas and Louisiana, the corporate mentioned in an announcement.

The transaction is predicted to shut within the first half of 2025.

Final month, Dow was changed by Sherwin-Williams (NYSE:SHW) within the Dow Jones Industrial Common, as the corporate grapples with weak demand restoration and aggressive regulatory insurance policies.

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