Macquarie Asset Management is investing $2.4bn (€2.27bn) for a 40% stake in Dow’s US Gulf Coast infrastructure assets.
Diversified chemical company Dow has said it expects to receive up to $3bn from Macquarie for a 49% stake in some of its US Gulf Coast infrastructure assets, with Macquarie initially acquiring a 40% stake and having the option to increase its holding to 49% within six months of the expected closing in the first half of 2025.
The transaction involves Macquarie, through its funds, partnering with Dow to launch Diamond Infrastructure Solutions, comprising non-product producing assets such as power and steam generation, pipelines, environmental operations, and general site infrastructure.
Diamond Infrastructure’s assets are located at five of Dow’s US Gulf Coast manufacturing sites in Texas and Louisiana. The pipeline and storage assets span the Gulf Coast, connecting to key natural gas, natural gas liquids and olefin hubs.
Diamond Infrastructure will be a specialist infrastructure provider to Dow and other industrial customers at its locations.
Ben Way, the global head of Macquarie Asset Management, said: “As a long-term owner of essential infrastructure, we recognise the value that can be unlocked through the development of infrastructure platforms like Diamond Infrastructure Solutions.
“We believe that our significant infrastructure experience and capabilities, coupled with Dow’s operational excellence, will deliver additional efficiencies and long-term growth.”
Jim Fitterling, chair and CEO of Dow, said: “Today’s announcement demonstrates Dow’s ongoing commitment to value-maximising actions across our portfolio. This transaction further strengthens our financial flexibility and enables continued cash deployment towards the most attractive opportunities that will create long-term value for our stakeholders.
“We are confident that Macquarie is the right industrially-minded partner due to our shared values to ensure the ongoing safe and reliable operations of these assets to support Dow and industrial customers across the US Gulf Coast.”
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