Dow to sell U.S. Gulf Coast marine, terminal operations for $620 million
Dow Inc has agreed to divest some of its U.S. Gulf Coast marine and terminal operations to a joint venture owned by Royal Vopak and BlackRock's Global Energy & Power Infrastructure Fund for $620 million.
The deal with Vopak Industrial Infrastructure Americas includes marine and storage terminal operations and assets at Dow’s sites in Plaquemine and St. Charles, Louisiana, and Freeport, Texas, the company said.
Dow expects the deal to close in the fourth quarter, following regulatory approvals from the United States and the European Union.
In July, Dow agreed to sell its rail infrastructure assets at six North American sites to transportation service firm Watco Companies LLC for about $310 million.
In its earnings report in July, Dow laid out cost-cutting plans to cope with the fallout of the coronavirus epidemic, adding that it was taking other actions to exit non-competitive assets.
The company also said it was evaluating its ownership of non-revenue generating assets across its global portfolio.
Goldman Sachs acted as a financial advisor to Dow and Mayer Brown provided legal support.
Reporting by Aakriti Bhalla in Bengaluru; Editing by Anil D’Silva
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