Dow declares projected divestiture of ethylene acrylic acid (EAA) copolymers business

06-Feb-17

Dow Chemical Company (DOW) declared that it has reached a contract to sell its global Ethylene Acrylic Acid (EAA) copolymers and ionomers business to SK Global Chemical Co., LTD., a partner of SK Innovation, as a part of the ongoing regulatory approval process for the projected Dow and DuPont merger transaction. The divestiture will be conditioned on Dow and DuPont closing their merger transaction, in addition to other closing conditions, counting 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, together with associated intellectual property and product trademarks.

“Recently’s divestiture declaration marks noteworthy progress in our negotiations 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 projected merger,” said Andrew Liveris, Dow’s chairman and chief executive officer.