Dow Chemical (DOW) Agrees to Divest Morton Salt
The Dow Chemical Company (NYSE: DOW) today announced that Rohm and Haas, a wholly owned subsidiary of The Dow Chemical Company, has entered into a definitive agreement to sell the stock of Morton International, Inc., the salt business of Rohm and Haas, to K+S Aktiengesellschaft.
The sale of Morton International is the next step in Dow's de-leveraging plan. The actions taken by the Company since early January include:
- Re-negotiated and extended the terms of the Rohm and Haas bridge loan.
- Reduced the dividend by 64%, saving approximately $1.0 billion on an annualized basis.
- Negotiated for more favorable terms in connection with the Rohm and Haas transaction, including $2.5 billion in preferred stock and exercising an option for $500 million in common equity from the Haas Family Trusts.
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