Dow Announces Proposed Divestiture of Ethylene Acrylic Acid EAA Copolymers Business
Divestiture marks significant progress in proposed Dow and DuPont transaction
MIDLAND, Mich. - February 02, 2017 - 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.
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.