The Dow Chemical Company said in December it has finalised the sale of its stake in MEGlobal for $1.5bn to its Kuwaiti joint venture, Equate.
Dow had previously announced its intent to optimise its ownership in Equate, with the closure of this transaction brining it one step closer to realising its plans.
“This is a significant step in our Kuwaiti JV consolidation activities and demonstrates Dow’s drive to review our entire joint venture portfolio with a best-owner mindset, with the objective of delivering maximum value to our shareholders,” said Andrew N. 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.”
HSBC Securities (USA) served as financial advisor to Dow for the transaction, while Shearman & Sterling served as legal counsel.
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% ownership stake in MEGlobal.