Dow Chemical to pursue legal action against Kuwait
January 8, 2009
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.