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Dow Announces Agreement to Sell its 50% Ownership in DowAksa Joint Venture

1. Dow sells its 50% interest in DowAksa for $125 million. 2. Proceeds will support Dow's balanced capital allocation strategy. 3. Sale aligns with Dow's focus on core downstream businesses. 4. Transaction expected to close in Q3 2025, pending approvals. 5. Dow aims for profitable growth and sustainability in materials science.

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Why Bullish?

The sale of DowAksa indicates a strategic exit to enhance core business focus. Historically, similar divestitures have positively influenced valuations by allowing reinvestment into higher-margin operations.

How important is it?

The sale is significant for Dow’s strategic direction, impacting operational dynamics and investor confidence in future growth.

Why Long Term?

While the sale will close in 2025, the reallocation of funds can enhance growth potential and investor confidence over time, aligning with Dow's long-term strategy.

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AKSADDDREEMNLYB
Dow agrees to sell its 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to its 50/50 joint venture partner Aksa Akrilik Kimya Sanayii A.Ş. Proceeds will be used to support Dow's balanced capital allocation approach , /PRNewswire/ -- Dow (NYSE: DOW) today announced that it has signed a sale and purchase agreement to sell its 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to Aksa Akrilik Kimya Sanayii A.Ş., a company of Akkök Holding. Aksa Aksa Akrilik Kimya Sanayii A.Ş., the other 50% joint venture partner, has agreed to acquire Dow's 50% interest. Dow's proceeds from the sale are expected to be $125 million, which reflects, after accounting for debt, an enterprise value of approximately 10x the estimated 2025 operating EBITDA. Dow's decision to exit the joint venture, which was formed in 2012, is consistent with Dow's best-owner mindset strategy of focusing on its core, high-value downstream businesses. The proceeds from the transaction will be used to support the Company's balanced capital allocation approach. The sale is expected to close in the third quarter of 2025, subject to customary regulatory approvals and other closing conditions. BNP Paribas acted as exclusive financial advisor to Dow on this transaction. About DowDow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 30 countries and employ approximately 36,000 people. Dow delivered sales of approximately $43 billion in 2024. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com. X: https://twitter.com/DowNewsroom Facebook: https://www.facebook.com/dow/ LinkedIn: http://www.linkedin.com/company/dow-chemical Instagram: http://instagram.com/dow_official             ®TM Trademark of The Dow Chemical Company ("Dow") or an affiliated company of Dow SOURCE The Dow Chemical Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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