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Cabot Corporation -- Disposal of Specialty Fluids allows Cabot to refocus on its core businesses

Moody's Investors Service ("Moody's") said that Cabot Corporation's (Baa2 stable) disposal of its Specialty Fluids business will be credit positive in the long term, because management would be able to refocus on its core business by exiting a business with exposure to the volatile oil and gas industry and is likely to use the meaningful disposal proceeds for investment in specialty carbon black and fumed metal oxides with better earnings prospects. On Jan 30, 2019, Cabot announced that it has entered into a definitive agreement to sell its Specialty Fluids business to a wholly owned subsidiary of Sinomine Resource Group Co., Ltd., in a transaction valued at $135 million. Cabot Corporation (Cabot) is a global supplier of commodity and specialty materials.