DOW JONES NEWSWIRES
Dow Chemical Co. (DOW) announced a pair of divestitures worth
more than $900 million as the chemicals giant continues paring
assets to pay down debt from acquiring Rohm & Haas last month
for $16.3 billion.
Valero Energy Corp. (VLO) will acquire Dow's 45% stake in the
Total Raffinaderij Nederland NV. The companies said the stake has
an enterprise value of about $725 million, including working
capital and inventory. Dow also said it will sell its calcium
chloride business for $210 million to a strategic chemical industry
buyer, which it didn't name.
Dow's shares were recently up 3.4% at $18.48, while Valero
gained 1.8% at $21.92 amid a broad market rally.
Earlier this year, Dow announced it would sell its Morton Salt
business for $1.7 billion and issued $6 billion in new long-term
debt and $2.25 billion in new shares. The company is working to pay
off a $9.2 billion loan to help finance the Rohm & Haas
deal.
For Valero's part, the Texas-based oil refiner and gasoline
seller said the deal will give it entry into the European market.
The deal is subject to right of first refusal by France's Total SA
(TOT), which owns the other 55% stake in TRN. The transaction is
expected to close in the third quarter.
TRN owns a crude oil refinery in the Netherlands with a
throughput capacity of 190,000 barrels a day. It also owns a
distillate hydrocracking unit with 68,000-barrel-a-day capacity and
an interest in the Massvlatke Olie Terminal in Rotterdam, one of
the world's largest oil terminals.
Valero Chairman and Chief Executive Bill Klesse said the
refinery is able to process a variety of feedstocks into diesel and
jet fuel. He added Total would continue to operate the refinery
with input from Valero's management.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com