Shearman & Sterling is advising longstanding client The Dow Chemical Company in connection with the sale of its ownership interest in MEGlobal to EQUATE Petrochemical Company K.S.C. for $1.5 billion in pre-tax proceeds, representing a significant step in Dow’s optimization of its Kuwaiti joint ventures.
Headquartered in Dubai, UAE, MEGlobal is a world leader in manufacturing and marketing monoethylene glycol and diethylene glycol (EG). The company is a joint venture between Dow and Petrochemical Industries Company (PIC) of Kuwait.
EQUATE is the operator of an integrated world-scale manufacturing facility producing more than five million tons annually of high-quality petrochemical products, including polyethylene, ethylene and EG, that are marketed throughout the Middle East, Asia, Africa and Europe. EQUATE is the single operator of Greater EQUATE, which includes The Kuwait Olefins Company, The Kuwait Styrene Company and Kuwait Paraxylene Production Company under one fully integrated operational umbrella. Through its ownership interest in Greater EQUATE, Dow retains a 42.5 percent ownership stake in MEGlobal.