(MENAFN) Dow Chemical said it would separate most of its chlorine business and sell it to smaller rival Olin in a tax-efficient deal valued at about USD5 billion, Khaleej Times reported.
The transaction, structured as a Reverse Morris Trust deal, allows Dow to sell its non-core US Gulf Coast chlor-alkali and vinyl, chlorinated organics and epoxy assets without having to pay taxes.
Under the agreement, Dow will get USD2 billion in cash and cash equivalents, about USD2.2 billion in Olin stock, and Olin will assume USD800 million of pension and liabilities.
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