The Dow Chemical Company completes the sale of MEGlobal to EQUATE Petrochemical Company K.S.C.
December 23, 2015
3.20 Billion USD
On December 23, 2015, The Dow Chemical Company (Dow) completed the sale of its ownership interest in MEGlobal to EQUATE Petrochemical Company K.S.C. (EQUATE) and has received $1.5 billion in pre-tax proceeds. Dow had previously announced its intent to optimize its ownership in its Kuwaiti Joint Ventures and the closure of this transaction represents progress toward delivering this commitment. The majority of MEGlobal’s value consists of Canadian assets owned by MEGlobal Canada Inc.
The Dow Chemical Company, headquartered in Midland, Michigan.
MEGlobal, headquartered in Dubai, UAE, is a leader in the manufacture and marketing of monoethylene glycol and diethylene glycol. MEGlobal is a joint venture between Dow and Petrochemical Industries Company (PIC) of Kuwait. Through its ownership interest in EQUATE, Dow retains a 42.5 percent ownership stake in MEGlobal.
EQUATE Petrochemical Company K.S.C is headquartered in Kuwait, is the operator of an integrates world-scale manufacturing facility producing more than 5 million tons annually of high-quality petrochemical products, including polyethylene, ethylene, and EG, that are marketed throughout the Middle East, Asia, Africa and Europe.
McCarthy Tétrault LLP acted as Canadian corporate and competition law counsel to Dow with a team that was led by Rick Pawluk (corporate) and included Scott Bergen (corporate); Oliver Borgers and Jonathan Bitran (competition); and TJ Kang (tax).