NEW YORK, N.Y. (Reuters) – Dow Chemical Co. plans to hold onto its agricultural business for now and hopes to pay off debt from its April buyout of Rohm & Haas soon, chief executive officer Andrew Liveris said.
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 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.”
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The unit has the potential to be a big player in an industry dominated by Monsanto Co., 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.
In recent months, rumours have swirled that Switzerland’s Syngenta or China National Chemical Corp. might be interested in the unit.
Meanwhile, Liveris said Dow would fully pay off the loan from its more than $16 billion US purchase of Rohm & Haas Co. once it completes the sale of its Morton Salt and Optimal businesses.
The company has said in the past it expects those deals to close by the end of the year.
