Dow Chemical to pursue legal action against Kuwait

Dow Chemical Co announced it will take legal action against Petrochemical Industries Co of Kuwait and is seeking more than $2.5 billion in damages from Kuwait for backing out of a joint venture agreement, according to Reuters. Last month, Kuwait decided to scrap a deal to form a $17.4 billion petrochemical joint venture with Dow, potentially upsetting Dow''s plans to buy rival Rohm & Haas Co. Dow had planned to use proceeds from the joint venture to repay a large part of the debt financing for the $15.3 billion Rohm & Haas acquisition. Under the joint venture agreement, Petrochemical Industries was to pay Dow $7.5 billion.