MIDLAND, Mich. — The Dow Chemical Company and Olin Corporation have received a favorable private letter ruling from the U.S. Internal Revenue Service (IRS) regarding the proposed Reverse Morris Trust transaction, according to a press release.
The ruling satisfies one of the closing conditions to the transaction, reported the release. It also supports the future success of both companies.
“This milestone underscores our ability to achieve tax efficiency for this landmark transaction that will enhance value for both Dow and Olin shareholders and advance Dow’s portfolio transformation,” said Andrew N. Liveris, Dow’s chairman and CEO. “We are pleased to see this strategically significant transaction moving forward on schedule.”
The companies announced an agreement on March 27 to separate Dow’s U.S. Gulf Coast Chlor-Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses, stated the release. The businesses will be merged with Olin in a Reverse Morris Trust transaction.
Dow shareholders will receive a majority or more of Olin shares, reported the release, while existing Olin shareholders will own the remaining shares.
“We are progressing toward our vision of becoming a low-cost global leader in chlor-alkali and derivatives and expanding our geographic and end-use market presence through an expanded portfolio, advantaged feedstocks, and the combined capabilities of Dow and Olin people to create value for our shareholders and customers,” explained Joseph D. Rupp, Olin’s chairman and CEO, in the release.
Olin shareholders will need to approve the transaction to make it complete, shared the release. It is expected to close by the end of 2015.
Click here to read the entire release.