Dow Chemical To Split Off Chlorine Business In $5 Billion Deal
27 March 2015 - 10:39PM
Dow Jones News
By Chelsey Dulaney
Dow Chemical Co. said Friday that it will split off a
significant portion of its chlorine business and merge it with Olin
Corp. in a deal valued at $5 billion.
The new entity, which will include Dow's U.S. Gulf Coast
chlor-alkali and vinyl, global chlorinated organics and epoxy
businesses, is expected to have revenue of nearly $7 billion and
will be an industry leader, the companies said.
The move comes as Dow faces criticism of its structure from
activist hedge fund Third Point LLC, which has pressured Dow to
break apart its petrochemicals business from its specialty
chemicals segment. Dow agreed in November to appease the firm by
adding two directors to its board who were proposed by Third Point,
along with two other independent directors who were favored by
Dow.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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