The Dow Chemical Company (DOW.US) has agreed to sell a 40% stake in its Gulf of Mexico assets to Macrolink

Dow (DOW.US) has agreed to sell a 40% stake in its part of the infrastructure assets along the U.S. Gulf Coast, with the possibility of increasing its stake to 49% within six months of the closing of the transaction, which is expected to bring the company an initial cash income of about $2.4 billion and total proceeds of up to $3 billion.

The two sides will establish a new partnership called Diamond Infrastructure Solutions, which aims to create new growth opportunities by opening up resources at Dow's Gulf Coast facilities in the U.S. to third-party customers, combining Dow's operating advantages and Macquarie Asset Management's expertise in infrastructure and energy.

Diamond Infrastructure Solutions will include non-product manufacturing assets at Dow's five manufacturing bases along the U.S. Gulf Coast, such as power and steam generation, pipelines, environmental operations, and general site infrastructure, located in Freeport, Texas, Corpus Christi, Texas, and Westlake, Texas, and Plaquemine and St. Charles, Louisiana.

The transaction is expected to be completed in the first half of 2025, subject to customary regulatory approvals and other closing conditions. Dow's stock rose 4.1% before the market opened on Monday, trading at $43.68.