Dow Chemical to merge with Clayton based Olin Corp in $5 billion deal
MIDLAND, Mich. (AP) _ Dow Chemical is breaking off a significant portion of its chlorine operations in a deal valued at $5 billion.
Dow has been under pressure from the hedge fund Third Point LLC to split its specialty chemical and petrochemical businesses.
The company said Friday that it would join its chlor-alkali and downstream derivatives businesses with Olin Corp. in a cash-and-stock transaction.
The deal includes $2 billion of cash and cash equivalents to be paid to Dow; an estimated $2.2 billion in Olin common stock and about $800 million of pension assumptions and other liabilities.
The new company will have annual revenue of nearly $7 billion.
Shareholders of Dow Chemical Co. will receive approximately 50.5 percent of Olin’s stock, with existing Olin shareholders owning about 49.5 percent.