Dow, Olin Ink Chlorine Deal

Dow Chemical has completed the sale of its chlorine and derivatives business to Olin. Olin has taken over Dow’s chlor-alkali plants in Freeport, Texas, and Plaquemine, La., as well as its epoxy resins and chlorinated organics businesses. Dow is receiving a total of $4.6 billion worth of cash, Olin stock for its shareholders, and liability reduction. In connection with the deal, Dow has designated two directors to serve on Olin’s board: William H. Weideman, Dow’s former chief financial officer, and Carol A. Williams, who served as a special adviser to Dow CEO Andrew N. Liveris. With this transaction, Dow has divested $12 billion worth of businesses in the past two years, ahead of its goal of more than $8 billion. The deal will hugely expand Olin into a roughly $7 billion-per-year company, up from $2.2 billion last year. Olin expects the combination to generate $200 million in cost savings.