Been waiting far too long for this news
Dow Chemical Co (DOW.N) plans to hold onto its agricultural business for now and hopes to pay off debt from its April buyout of Rohm & Haas very soon, Chief Executive Andrew Liveris said on Wednesday.
Liveris was backing away from statements earlier this year that Dow might spin off the fast-growing unit, sell it, or team up with another agricultural company in order to cut its debt from the Rohm & Haas purchase.
“Unlocking the value of Dow AgroSciences has always been on our radar screen,” Liveris said at the Credit Suisse Chemical and Agricultural Science Conference. “We will not let that value go out the door.”
The unit has the potential to be a big player in an industry dominated by Monsanto Co (MON.N), so a sale or spinoff just does not make sense right now, he said.
“Everyone wants to be the next Monsanto,” Liveris said. “We want our current shareholders to benefit.”
Dow AgroSciences, which makes genetically modified seeds, herbicides and pesticides, has seen explosive growth in recent years, helping to bolster its parent’s overall performance.
Midland, Michigan-based Dow would not have made a profit in the first quarter if not for the agricultural unit.
Ever since this was hinted at earlier in the year, I have been screaming selling it made no sense. As time went on it appeared it was only being considered as a last gasp effort to lower debt.
It would seem Liveris’s statements make the possibility of its sale all but nil…
Good