An arbitrator ruled Kuwait's state-run chemical company to pay Dow Chemical Co US$2.16 bln for wrongly canceling a planned petrochemical joint venture in 2008, as per Reuters. Kuwait pulled out of the US$17.4 bln "K-Dow" petrochemical joint venture as the global economy sunk into a deep recession nearly four years ago and triggered charges from Dow that it had violated agreements. The International Chamber of Commerce's International Court ruling against Petrochemical Industries Co (PIC) of Kuwait is final and binding and believed to be one of the largest ever arbitration awards, according to Dow's law firm, Shearman and Sterling LLP.
Dow and PIC currently operate four other joint ventures, including ME Global, EQUATE, Kuwait Olefins Co and Kuwait Styrene Co.
The December 2008 cancellation of the K-Dow joint venture had raised fears at the time among investors that Dow would be unable to finance its planned $15 billion purchase of specialty chemicals maker Rohm & Haas, a key plank in Liveris' strategy to shift the company toward the higher margin business. That deal only closed after Dow and Rohm & Haas altered the terms, avoiding a trial at the last minute that had been filed by Rohm.