Dow and Saudi Aramco Sign MOU for Potential Equity Ownership Restructure in Sadara Joint Venture
28 August 2017 - 11:00PM
Business Wire
Dow to Potentially Increase Equity Ownership in Sadara to 50
Percent
Sadara will add new value chains to Saudi Arabia’s vast
petroleum reserves, resulting in the diversification of the economy
and region
The Dow Chemical Company (NYSE: DOW) and the Saudi Arabian Oil
Company (Saudi Aramco) today announced a non-binding Memorandum of
Understanding (MOU) that sets forth a process for Dow to acquire an
additional 15 percent 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 percent
Saudi Aramco and 35 percent Dow. If the potential transaction is
concluded as presently proposed, Dow and Saudi Aramco would each
hold a 50 percent equity stake in Sadara.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170828005484/en/
“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. “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.”
Saudi Aramco President and CEO Amin H. Nasser said, “We are
proud of our partnership with Dow given its preeminent stature
among the world’s leading chemical companies. 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.”
The potential equity equalization would occur following the
later of two events― (i) the intended separation of the Materials
Science Company, within 18 months after the close of the merger of
equals between Dow and DuPont (NYSE: DD) on August 31 and (ii)
Sadara’s completion of the Creditors’ Reliability Test, which is
part of the limited-recourse financing used to fund the Sadara
project development. The anticipated financial impact of the
potential transaction is not being disclosed. The Sadara financial
structure and governance remain unchanged.
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 specialty chemicals. The more than three million
metric tons of performance-focused products serving the Packaging,
Transportation, Infrastructure and Consumer markets will add new
value chains to Saudi Arabia’s vast hydrocarbon reserves, resulting
in the diversification of the economy and region.
About Dow
Dow (NYSE: DOW) combines the power of science and technology to
passionately innovate what is essential to human progress. The
Company is driving innovations that extract value from material,
polymer, chemical and biological science to help address many of
the world's most challenging problems, such as the need for fresh
food, safer and more sustainable transportation, clean water,
energy efficiency, more durable infrastructure, and increasing
agricultural productivity. Dow's integrated, market-driven
portfolio delivers a broad range of technology-based products and
solutions to customers in 175 countries and in high-growth sectors
such as packaging, infrastructure, transportation, consumer care,
electronics, and agriculture. In 2016, Dow had annual sales of $48
billion and employed approximately 56,000 people worldwide. The
Company's more than 7,000 product families are manufactured at 189
sites in 34 countries across the globe. References to "Dow" or the
"Company" mean The Dow Chemical Company and its consolidated
subsidiaries unless otherwise expressly noted. More information
about Dow can be found at www.dow.com.
About Saudi Aramco
Saudi Aramco is a world leader in integrated energy and
chemicals. We are driven by the core belief that energy is
opportunity. From producing approximately one in every eight
barrels of the world’s crude oil supply to developing new energy
technologies, our global team is dedicated to creating positive
impact in all that we do. We focus on making our resources more
sustainable and more useful. This promotes long-term economic
growth and prosperity around the world. Visit us at
www.saudiaramco.com
Note: The forward looking statements contained in this document
involve risks and uncertainties that may affect Dow’s operations,
markets, products, services, prices and other factors as discussed
in filings with the Securities and Exchange Commission (“SEC”).
These risks and uncertainties include, but are not limited to,
economic, competitive, legal, governmental and technological
factors. Accordingly, there is no assurance that Dow’s expectations
will be realized. The Company assumes no obligation to provide
revisions to any forward looking statements should circumstances
change, except as otherwise required by securities and other
applicable laws.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170828005484/en/
Rachelle SchikorraThe Dow Chemical
Companyryschikorra@dow.com+1 989-638-4090orInternational Media
RelationsSaudi Aramcointernational.media@aramco.com
Dow (NYSE:DOW)
Historical Stock Chart
From Apr 2024 to May 2024
Dow (NYSE:DOW)
Historical Stock Chart
From May 2023 to May 2024