Saudi Arabia: Petrochemicals Dow to Potentially Increase Equity Ownership in Sadara to 50 %
Dow and Saudi Aramco announced a non-binding Memorandum of Understanding (MOU) that involves the acquisition of an additional 15 % ownership interest by Dow from Saudi Aramco in Sadara, a joint venture developed by the two companies.
Midland/USA — The current equity ownership split is 65 % Saudi Aramco and 35 % Dow. If the potential transaction is concluded as presently proposed, both companies would each hold a 50 % equity stake in Sadara.
The potential equity equalization would occur following the intended separation of the Materials Science Company, within 18 months after the close of the merger of equals between Dow and Dupont on August 31 and Sadara’s completion of the Creditors’ Reliability Test, which is part of the limited-recourse financing used to fund the Sadara project development.
The anticipated financial impact of the potential transaction is not being disclosed. The Sadara financial structure and governance remain unchanged.
The Sadara chemical complex ― the largest of its kind ever built in a single phase ― is currently operating all of its 26 world-scale units that manufacture a portfolio of valued-added performance plastics and specialty chemicals.
The more than three million metric tons of performance-focused products serving the Packaging, Transportation, Infrastructure and Consumer markets will add new value chains to Saudi Arabia’s vast hydrocarbon reserves.