Dow Announces Proposed Divestiture of Ethylene Acrylic Acid (EAA) Copolymers Business
February 02 2017 - 6:45AM
Business Wire
Divestiture marks significant progress in
proposed Dow and DuPont transaction
The Dow Chemical Company (NYSE: DOW) announced today that it has
reached an agreement to sell its global Ethylene Acrylic Acid (EAA)
copolymers and ionomers business to SK Global Chemical Co., LTD., a
subsidiary of SK Innovation, as a part of the ongoing regulatory
approval process for the proposed Dow and DuPont merger
transaction. The divestiture will be conditioned on Dow and DuPont
closing their merger transaction, in addition to other closing
conditions, including regulatory filings, local employment law and
governance obligations.
Dow is a leading producer of EAA copolymers, which it markets
under the PRIMACOR™ brand as part of Dow’s Packaging and Specialty
Plastics business. The divestiture agreement includes production
assets located in Freeport, Texas, and Tarragona, Spain, along with
associated intellectual property and product trademarks.
“Today’s divestiture announcement marks significant progress in
our discussions with the competition authorities. We continue to
work constructively with all of the relevant competition and
regulatory authorities around the globe to address their questions
and to obtain clearance for the proposed merger,” said Andrew
Liveris, Dow’s chairman and chief executive officer.
Under terms of the purchase agreement, SK Global Chemical will
honor certain customer and supplier contracts and other agreements.
Both companies are working together for a seamless transition for
all stakeholders.
Given current regulatory agency status, merger closing for the
proposed Dow and DuPont transaction would be expected to occur
in the first half of 2017, subject to satisfaction of
customary closing conditions, including receipt of all regulatory
approvals. Dow and DuPont expect the intended business separation
transactions to be about 18 months after the merger close.
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170202005572/en/
The Dow Chemical CompanyMediaRachelle Schikorra, +1
989-638-4090ryschikorra@dow.comorInvestorsNeal Sheorey, +1
989-636-6347nrsheorey@dow.com
Dow (NYSE:DOW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Dow (NYSE:DOW)
Historical Stock Chart
From Apr 2023 to Apr 2024