stock jumped more than 4% in pre-market trading Friday morning after the chemical giant announced a $5 billion deal to break off a major portion of its chlorine operations.

Dow will merge most of its chlorine business with Olin Corp., following pressure from the hedge fund Third Point LLC to separate its chemical and petrochemical operations.

“By combining Dow’s world-class assets and people with Olin, we are creating a premier company with the scope and capabilities to optimally leverage long-term growth opportunities in the marketplace and generate significant shareholder value,” said Dow CEO Andrew N. Liveris, in a statement.

Liveris said that the deal helped the company exceed its target to divest $7 billion to $8.5 billion of non-strategic businesses and assets.