Dow to pursue legal options against Kuwait, seeks new partner

07-Jan-09

Largest US chemical producer Dow Chemical Co. is mulling pursuit of legal options against Kuwait for canceling a joint venture agreement and plans to seek a new partner to invest in its basic-plastics business. The cancelled JV with Kuwait was originally planned to allow Dow gain access to low-cost raw materials and add more- profitable product lines. But Kuwait called off the venture last month, depriving Dow of cash it planned to be utilized to acquire Rohm & Haas Co. Dow is likely to go ahead with the Rohm & Haas merger, partly because of penalties involved in walking away, and partly because it would be a positive step if the management could renegotiate a lower price for the company Dow is currently working to establish a formal process for securing a new venture, and has not named any of the interested parties that have approached Dow about acquiring an interest in the unit.