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.
The Shearman & Sterling team is led by New York M&A partner and Global Head of M&A George Casey and New York M&A counsel Heiko Schiwek, and includes partners Douglas McFadyen (New York-Tax), Doreen Lilienfeld (New York-Compensation, Governance & ERISA), Joshua Thompson (New York-Finance), Marwan Elaraby (Abu Dhabi-Project Development & Finance), Robert Nelson (San Francisco-Project Development & Finance); Matthew Powell (New York-Mergers & Acquisitions), Jordan Altman (New York-Intellectual Property Transactions), Jason Pratt (New York-Real Estate), Harald Halbhuber (New York-Capital Markets) and Richard Alsop (New York-Capital Markets); associates Greg Gewirtz (New York-Mergers & Acquisitions), Samara Thomas (New York-Mergers & Acquisitions), Monica Lamb (New York-Project Development & Finance), Maroun El-Hachem (New York-Corporate), Helen Cook (Washington DC-Project Development & Finance); Yoon-Jee Kim (New York-Capital Markets), Drew Valentine (New York-Capital Markets), Mark Pereira (New York-Intellectual Property Transactions/Mergers & Acquisitions), Victor Nilsson (New York-Corporate), Dillon Smith (New York-Corporate), Jack Melamed (New York-Corporate), Christine Wright (New York-Finance), Tasha Matharu (New York-Compensation, Governance & ERISA) and Alex Rosenthal (New York-Corporate); and international associates Yanlin Liu and Vita Zhu.