Kuwait to Pay Dow $9.5 Billion in Plastics Venture |
| Bloomberg - Dec 13, 2007 |
Kuwait agreed to buy half of Dow Chemical Co.'s plastics assets for $9.5 billion and form a joint venture with the largest U.S. chemical maker, the biggest overseas investment by a Kuwaiti company. Dow's shares soared.
Kuwait's Petrochemical Industries Co. will gain a 50 percent stake in businesses that generated 22 percent of Dow's sales last year, Midland, Michigan-based Dow said today in a statement. The venture will employ 5,000 and include all Dow's plants that make polyethylene, polypropylene and polycarbonate plastics, as well as intermediate chemicals known as amines, the company said.
Persian Gulf states, flush with cash from oil revenue, have doubled their overseas investments to a record $74.5 billion this year, including today's deal, Bloomberg data show. Dow Chief Executive Officer Andrew Liveris said the new venture will have access to cheaper raw materials, and Dow will use the cash to buy specialty-chemical assets.
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- Posted: 2007-12-13 10:29:51
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