Dow, Saudi Aramco sign non-binding deal to change ownership of Saudi joint venture
The Dow Chemical Company and the Saudi Arabian Oil Company (Saudi Aramco) have announced a non-binding deal that sets forth a process for Dow to acquire an additional 15 percent stake in Sadara Chemical Company, 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, Dow said in a statement.
“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.”
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.
Saudi Aramco president and CEO, Amin H Nasser, added: “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 anticipated financial impact of the potential transaction is not being disclosed. The Sadara financial structure and governance remain unchanged, the statement said.