Dow Chemical Strikes Deal

The Dow Chemical Company said Monday it has signed a non-binding memorandum of understanding under which it it may buy an additional 15% in Sadara Chemical Company from joint venture partner Saudi Aramco, which would lift its stake in the JV to 50% from currently 35%. “Increasing our equity stake in this iconic joint venture is a powerful example of our strategic partnership with Saudi Aramco and is yet another accelerator in Dow’s long-term growth strategy designed to capture growing consumer-led demand in our key end-markets of transportation, infrastructure, packaging, and consumer products in developing regions,” CEO Andrew Liveris said.

Dow said the potential change in ownership would occur after two events: the planned separation of the material science company, within 18 months after the close of the merger with DuPong (DD) on Aug. 31, and after Sadara’s completion of the creditors’ reliability test, which is part of the limited-recourse financing used to fund the Sadara project development.

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