Dow Chemical plans Kuwaiti joint venture

MIDLAND, MICHIGAN: Dow Chemical Co said Thursday it plans to sell a 50 per cent interest in five of its global businesses to a Kuwaiti company for about $9.5 billion (euro6.47 billion) to form a new joint petrochemicals venture.

Midland-based Dow said the transaction with Petrochemical Industries Co, a subsidiary of state-owned Kuwait Petroleum Corp, is subject to the completion of definitive agreements and regulatory approvals.

Dow expects the deal to close in late 2008. The joint venture will be based in the US and will employ more than 5,000 people worldwide, mostly current Dow employees, the company said. The new company will be 50 per cent owned by Dow and PIC.