Dow Chemical is continuing its series of divestitures as part of its effort to become a more asset light business. This will limit the company's reliance on raw materials and aid in paying the debt from its acquisition of Rohm & Haas. Dow has achieved US$118 mln in savings by leveraging supplier contracts between Rohm & Haas and Dow.
Dow's Union Carbide Corporation subsidiary will sell its ownership stake in the Optimal Group of Companies to Petronas for US$660 mln.
Dow agreed to sell an acrylic acid and esters plant and the North American unit of its UCAR Emulsion Systems specialty latex business to Arkema for US$50 million. The sale was required to comply with Federal Trade Commission requirements following its purchase of Rohm & Haas.
Dow has announced the US$1.7 bln sale of Morton Salt, expected to close in the second half, sold its calcium chloride business to Occidental Petroleum for US$210 mln, and signed a deal to sell its stake in Total Raffinaderij Nederland for an expected $725 million, also expected to close in the second half of 2009. Dow also recently announced it was closing three ethylene-related plants in Louisiana to cut costs and focus on specialty chemicals production.