Dow to sell stakes in 2 petrochemical JVs in Kuwait to streamline business and raise cash

13-Nov-14

As part of its efforts to streamline its business and raise cash so the company can buy back more of its own shares, Dow Chemical Co. said it would sell stakes in two petrochemical joint ventures in Kuwait. Chairman Andrew Liveris said Dow’s goals no longer fully match up with its Kuwaiti partners in MEGlobal and Equate, which include Petrochemical Industries Company of Kuwait and other companies. As per wsj.com, the chemical giant is under pressure to pare back its businesses to focus on high-margin products instead of commodities. Dow is in the midst of selling and spinning off several commodity chemical businesses with low profit margins, such as plants that make chlorine and epoxy, but activist investors are pressuring the company to go further.