USA: EAA Copolymers Dow Announces Divestiture to Pave Way for Merger Transaction with DuPont
The Dow Chemical Company has reached an agreement to sell its global Ethylene Acrylic Acid (EAA) copolymers and ionomers business to SK Global Chemical, a subsidiary of SK Innovation.
Midland/USA — The divestiture is part of the ongoing regulatory approval process for the proposed Dow and DuPont merger transaction and will be conditioned on Dow and DuPont closing their merger transaction, in addition to other closing conditions.
The company markets its EAA copolymers 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, along with associated intellectual property and product trademarks.
Under terms of the purchase agreement, SK Global Chemical will honor certain customer and supplier contracts and other agreements, the company announced. Merger closing for the proposed Dow and DuPont transaction would be expected to occur in the first half of 2017, subject to satisfaction of customary closing conditions, including receipt of all regulatory approvals. Both companies expect the intended business separation transactions to be about 18 months after the merger close.