Dow Chemical has taken its plastics additives business off the market, apparently because it did not get sufficiently high bids for the division.
The US chemical giant had signalled the additives operation was for sale, along with its polypropylene licensing and catalysts business unit, back in March.
At the time Andrew Liveris, Dow’s chairman and chief executive, described the decision to sell the two business units as a “proof point of Dow’s rigorous focus on return on capital, and…squarely in line with commitments we made earlier this year”.
However in a presentation arranged by Credit Suisse Liveris yesterday said the company was “quite comfortable” running the additives operation for cash.
“This is a valuable business that is currently being undervalued by buyers in the market,” news agency Bloomberg reported Liveris as telling conference delegates.
“As a result we’re pulling the transaction off the market,” he added.
Liveris declined to reveal what offers had been made for the additives division, although Bloomberg said analysts estimated it was worth around $520m (€383.6m).
The business generated annual revenues of around $680m (€501.7m) and $80m (€59m) in earnings before interest, tax, depreciation and amortisation.