Dow Inc has reached an agreement with Macquarie Asset Management to sell a 40% stake in some infrastructure assets along the USA Gulf Coast.
According to Zhitong Finance APP, Dow Inc (DOW.US) has reached an agreement with Macquarie Asset Management to sell a 40% stake in some infrastructure assets along the USA Gulf Coast, and may increase its stake to 49% within six months after the trade is completed. This transaction is expected to bring Dow Inc approximately 2.4 billion USD in initial cash income, with total earnings potentially reaching 3 billion USD.
It is understood that both parties will jointly establish a new partnership called Diamond Infrastructure Solutions, aiming to combine Dow's operational advantages and Macquarie Asset Management's expertise in the infrastructure and energy sectors, creating new growth opportunities by opening Dow's resources at USA Gulf Coast plants to third-party customers.
Diamond Infrastructure Solutions will include Dow Inc's non-product production assets from five manufacturing bases along the USA Gulf Coast, such as electrical utilities and steam production, pipelines, environmental operations, and general site infrastructure, located in Freeport, Texas City, and West Delphi, Texas, as well as Plaquemine and St. Charles in Louisiana.
The transaction is expected to be completed in the first half of 2025, but still requires the usual regulatory approvals and meeting other conditions for deal completion. As a result of this news, Dow Inc's stock price rose 4.1% in pre-market trading on Monday, quoted at 43.68 USD.