Dow Chemical boosts planned divestments target nearly 50% by mid-2016

Dow Chemical today announced an increased divestiture target aligned to further enhance the value of its portfolio and support the company's market-driven, integrated strategy.

On track to complete its goal of realizing $4.5 billion to $6 billion in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to $7 billion to $8.5 billion to be complete by mid-2016. 

Since 2013, the company has generated $2.5 billion in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.

“As part of our ongoing process to drive value through a best owner mindset and using economic value add as our lens, we are consistently looking across our portfolio to identify additional sources of long-term value creation and maximize the returns on the capital we invest,” said Andrew N. Liveris, chairman and CEO.

“Our focus on continuously and increasingly rewarding shareholders is at the core of every decision and action we take.”

Dow says it continues to assess opportunities to enhance the value created across its portfolio, including rationalizing its position in major joint ventures and divesting Dow businesses that, while valuable, no longer align with Dow’s integration strategy.

In line with this strategy, and as announced earlier today, Dow plans to reduce its equity position in all of its Kuwait joint ventures, which will release capital for other strategic purposes including shareholder remuneration. 

The company also announced the signing of a definitive agreement for the divestiture of its ANGUS Chemical business for $1.215 billion in net proceeds.