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

Turkish-Algerian JV to set up textile unit in Relizane

Textiles | On 17th Jan 2018

Turkish-Algerian JV to set up textile unit in Relizane

Construction of one of Africa's largest textile production...

Courtesy: Indorama Ventures

Textiles | On 17th Jan 2018

IVL, Huvis to enter JV for Low Melting Fibre plant in US

Indorama Ventures Limited (IVL), a global chemical producer, and...

Future Group to set up garment manufacturing in Bengal

Apparel/Garments | On 17th Jan 2018

Future Group to set up garment manufacturing in Bengal

Kishore Biyani-led Future Group is going to set up a garment...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Harsh Shah

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

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

January 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
68.8%
No
13.5%
Skip
17.7%

Total Votes: 96

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
63.5%
No
29.2%
Skip
7.3%

Total Votes: 96

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
87.5%
No
9.4%
Skip
3.1%

Total Votes: 96

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
82.3%
No
8.3%
Skip
9.4%

Total Votes: 96


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