(Reuters) - Dow said on Monday it would sell a 40% stake in some U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management for $2.4 billion as it looks to focus more on its core chemicals business.

Shares of Dow were up about 5% at $44.14 in premarket trading after the company said it would receive up to about $3 billion in cash proceeds if Macquarie decides to increase its equity share to 49% within six months of closing the deal.

Dow said the transaction was part of its actions to evaluate its ownership of non-product producing assets across its global portfolio, including power and steam production and pipelines.

In October, the chemicals firm began a review of some of its European assets, which account for nearly 20% of its sales in the EMEAI region.

The new partnership, Diamond Infrastructure Solutions, will be an infrastructure provider to Dow and other industrial customers at its five locations in Texas and Louisiana, the company said in a statement.

The transaction is expected to close in the first half of 2025.

Last month, Dow was replaced by Sherwin-Williams ( SHW ) in the Dow Jones Industrial Average, as the company grapples with weak demand recovery and competitive regulatory policies.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Anil D'Silva)