(Reuters) -Chemical company Dow said on Thursday it has begun a review of some of its European assets even as its third-quarter profit beat estimates on higher demand in the U.S. and Canada for industrial items such as polyethylene used in packaging.

Dow said the review was necessitated by a lack of demand recovery and competitive regulatory policies. Its shares rose 1.5% to $52.27 in premarket trading.

The company's asset review will be primarily focused on those in its Polyurethanes business, CEO Jim Fitterling said. Dow aims to complete the review by mid-2025.

"The pace of the global macroeconomic recovery has been slower than expected...," he said. "We're innovating with our customers, which was evident in the quarter as we captured growing demand in packaging, electronics and home & personal care."

Quarterly net sales from its packaging and specialty plastics segment, its largest by revenue, rose 1.1% to $5.52 billion from a year ago led by higher polyethylene sales for industrial, consumer, and flexible food packaging.

Dow's adjusted profit of 47 cents per share exceeded market expectations by a cent, according to data compiled by LSEG.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Arun Koyyur)