MOSCOW (MRC) -- Olin Corp. expects to close on its acquisition of Dow Chemical's chlorine operations early next month, reported CNBC.
The Clayton, Missouri, company said Tuesday that shareholders approved an increase in the number of Olin shares, which was required for the USD5 billion deal, announced in March, to move forward.
Dow gets USD2 billion of cash and cash equivalents; an estimated USD2.2 billion in Olin common stock and about USD800 million of pension assumptions and other liabilities.
The sale includes Dow's U.S. Gulf Coast chlor-alkali and vinyl, global chlorinated organics and global epoxy businesses. The new company will have annual revenue of nearly USD7 billion.
Shareholders of Dow Chemical Co. will receive about 50.5% of Olin's stock, with existing Olin shareholders owning about 49.5%.
In March, Dow and Olin also announced a separate, 20-year long-term capacity rights agreement for the supply of ethylene.
As MRC wrote before, this week, The Dow Chemical Company announced that it had commenced its exchange offer for the split-off of a significant portion of its chlorine value chain. The split-off transaction is the next step in the separation, from Dow, of its U.S. Gulf Coast Chlor-Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses. The exchange offer provides Dow shareholders with the opportunity to exchange their shares of Dow common stock for shares of Blue Cube Spinco Inc. (Splitco) common stock, which will convert into shares of Olin common stock upon completion of the proposed transaction. The exchange is expected to be tax-free to participating Dow shareholders for U.S. federal income tax purposes.
The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber. EBITDA was up 15% in 4Q at USD2.4 bn. Net profits were down 24% at USD734. Dow's sales in 4Q were unchanged on a year earlier at USD14.38 bn.
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