Home / Knowledge / News / Textiles / Dow to sell part of its MEGlobal stake to Equate
Dow to sell part of its MEGlobal stake to Equate
26
Oct '15
Dow Chemical Company has announced that it would sell a part of its ownership stake in MEGlobal – a joint venture between Dow and the Kuwait based Petrochemical Industries Company – to Equate.
 
With the objective of optimising its investment and expanding its relationship with Greater Equate on the US Gulf Coast, Dow intends to restructure its participation in its group of Kuwaiti Joint Ventures, the company said in a press release.
 
The optimisation is expected to occur in two phases. Under the first phase, Equate would acquire MEGlobal for a total equity consideration of $3.2 billion. The transaction will result in Dow receiving $1.5 billion in pre-tax proceeds. Following completion of this acquisition, which is expected to close by year-end 2015, Dow will retain a 42.5 per cent ownership stake in MEGlobal through its ownership of Greater Equate. This acquisition is also expected to drive efficiencies and cost savings due to existing synergies between MEGlobal and Equate.
 
In the second phase, Dow will further reduce its overall ownership interest in Greater Equate. The target to complete this second phase of the transaction is mid-2016.
 
“This announcement demonstrates Dow's commitment to evaluate our joint venture portfolio to unlock value for shareholders and simultaneously expand our relationship with a key strategic partner,” said Andrew N Liveris, Dow's chairman and chief executive officer. “This transaction allows Dow to maximise shareholder value, while maintaining our commitment to these industry-leading joint ventures.”
 
Meanwhile, leveraging the benefits of the shale gas availability, MEGlobal will build an MEG plant on the US Gulf Coast. It will enable MEGlobal and its parent companies to enjoy growth “in a highly strategic region of the world and drive significant expansion of MEGlobal's geographic footprint and capacity.”
 
However, the final location of the asset is contingent upon pending incentives, the statement said.
 
Established in July 2004 with its headquarters in Dubai, UAE, MEGlobal currently markets over 2.5 million metric tons of EG per year globally. EG is used as a raw material in the manufacture of polyester fibres (clothing and other textiles), polyethylene terephthalate (PET) resins, anti-freeze formulations and other industrial products. (RKS)
 

Fibre2Fashion News Desk – India


Must ReadView All

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search