Dow Chemical said it has finalised the sale of its shareholding in Meglobal to Equate Petrochemical Company and has received $1.5 billion in pre-tax proceeds.
“Dow had previously announced its intent to optimise its ownership in its Kuwaiti joint ventures and the closure of this transaction represents progress toward delivering this commitment,” a Dow press release stated.Dow Chemical said it has finalised the sale of its shareholding in Meglobal to Equate Petrochemical Company and has received $1.5 billion in pre-tax#
“This is a significant step in our Kuwaiti JV consolidation activities with the objective of delivering maximum value to our shareholders,” said Andrew Liveris, Dow's chairman and chief executive officer.
“This transaction enables Dow to maintain our commitment to these long-standing joint ventures, while returning value to our owners,” Liveris added.
Meglobal is a manufacturer and marketer of monoethylene glycol and diethylene glycol (EG), and is headquartered in Dubai, UAE.
Established in July 2004, Meglobal currently markets over 2.5 million metric tons of EG per year globally, which is a used in the manufacture of polyester fibres for textiles, PET resins, etc.
Meglobal is a joint venture between Dow and Petrochemical Industries Company (PIC) of Kuwait and through its ownership interest in Equate; Dow retains a 42.5 percent ownership stake in Meglobal.
Established in 1995, Equate is the operator of an integrated world-scale manufacturing facility producing more than 5 million tons annually of high-quality petrochemical products.
In 2014, Dow had annual sales of more than $58 billion and employed approximately 53,000 people worldwide and its more than 6,000 product families are manufactured at 201 sites in 35 countries. (AR)
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