Dow finalizes sale MEGlobal Equate

Dow finalizes sale of MEGlobal to Equate

10:07 AM, 28th December 2015
Dow finalizes sale of MEGlobal to Equate
Andrew Liveris, chairman and CEO, Dow Chemical Company. (File photo)

MIDLAND, US: The Dow Chemical Company said that it has finalized the transaction to sell its ownership interest in MEGlobal to Equate Petrochemical Company KSC and has received $1.5 billion in pre-tax proceeds. 

MEGlobal is a joint venture between Dow and Petrochemical Industries Company (PIC) of Kuwait. Through its ownership interest in Equate, Dow retains a 42.5 percent ownership stake in MEGlobal. 

Dow had previously announced its intent to optimize its ownership in its Kuwaiti joint ventures and the closure of this transaction represents progress toward delivering this commitment.

“This is a significant step in our Kuwaiti JV consolidation activities and demonstrates Dow’s drive to review our entire joint venture portfolio with the best-owner mindset,” said Andrew Liveris, chairman and CEO, Dow. “This transaction enables Dow to maintain our commitment to these long-standing joint ventures, while returning value to our owners.”

HSBC Securities (USA) Inc served as financial advisor to Dow for the transaction. Shearman & Sterling LLP served as Dow’s legal counsel.

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