The International Court of Arbitration of the International Chamber of Commerce released the final award amount, representing interest and costs, in the arbitration case between The Dow Chemical Company (NYSE:DOW) and Petrochemical Industries Company of Kuwait (PIC) related to the K-Dow transaction.
The final interest and costs awarded to Dow totals US$318 million, as of today, and is in addition to the partial award of US$2.16 billion announced last May – resulting in full damages awarded to Dow equal to US$2.48 billion. This is the last step in the disciplined arbitration process, bringing the process to a close. Both awards (partial and final) are binding and non-appealable. “Payment of these damages of nearly $2.5 billion will allow Dow to accelerate its priority uses for cash by further strengthening our balance sheet,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Dow and Kuwait share a long history and strong partnership, and this award ruling brings suitable closure to the arbitration process. The Dow team fully expects, and we are resolved to ensure, that PIC honors its contractual commitments in a timely manner.”
The total award amount is subject to continuing interest until Dow receives payment. Counsel for Dow is Shearman & Sterling.