2013-2014 Exhibitions
Dow Chemical, the largest US chemical producer by sales, is no longer considering the sale of its additives business due to low offers from bidders. The news comes just as compatriot Huntsman announced its acquisition of Rockwood’s TIO pigments/additives unit.
According to a report by Bloomberg, Chairman/CEO Andrew Liveris said Dow is “quite comfortable” continuing to run the additives business for cash. He was speaking at a conference organised by Credit Suisse Group AG. Liveris said that a reason for reconsidering the sale was because “it is a valuable business that is currently being undervalued by buyers in the market.” Without revealing the bidding offers, Liveris said the sale was being “taken off the table.”
But Dow will continue to pursue the sale of other units as outlined in March. The additives unit was part of the US$1.5 billion proposed divestitures of a fumigants and PP licensing and catalysts units.
The additives unit generated US$680 million annual sales and US$80 million in earnings before interest, taxes, depreciation and amortisation, and is valued at US$520 million, according to the Bloomberg report.
(PRA)
