Monday, Aug 28, 2017
Abu Dhabi: The Dow Chemical Company and the Saudi Arabian Oil Company (Saudi Aramco) on Monday announced a non-binding Memorandum of Understanding (MOU) that sets forth a process for Dow to acquire an additional 15 per cent ownership interest from Saudi Aramco in Sadara Chemical Company (Sadara), a joint venture developed by the two companies.
The current equity ownership split is 65 per cent Saudi Aramco and 35 per cent Dow. If the potential transaction is concluded as presently proposed, Dow and Saudi Aramco would each hold a 50 per cent equity stake in Sadara.
“Sadara is the result of a game-changing partnership between Saudi Aramco and Dow by delivering market-driven solutions that support the diversification of the country’s economy,” said Andrew Liveris, Dow’s chairman and CEO in a statement on Monday.
“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.”
The Sadara chemical complex, the largest of its kind ever built in a single phase is currently operating all of its 26 world-scale units that manufacture a portfolio of valued-added performance plastics and speciality chemicals.
Saudi Aramco President and CEO Amin H. Nasser said: Dow’s larger stake in Sadara is an endorsement of the Kingdom’s vibrant ecosystem, and signals Dow’s confidence in our partnership as a model of mutually beneficial foreign direct investment. The time is right to fully leverage Dow’s global leadership to further contribute to the Kingdom’s economic transformation in line with Vision 2030.”
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