Saudi Aramco, Dow sign MoU for potential restructure of Sadara ownership
DHAHRAN: Saudi Aramco and the Dow Chemical Company on Monday announced a non-binding memorandum of understanding (MoU) over the ownership of the Sadara Chemical Company.
The MoU sets forth a process for Dow to potentially acquire an additional 15 percent ownership interest in Sadara from Saudi Aramco.
The current equity ownership split in the joint venture developed by the two companies is 65 percent held by Saudi Aramco and 35 percent held by Dow. If the potential transaction is concluded as presently proposed, Dow and Saudi Aramco would each hold a 50 percent equity stake in Sadara.
“Sadara is the result of a game-changing partnership between Saudi Aramco and Dow by delivering market-driven solutions that support the diversification of the country’s economy,” said Andrew Liveris, Dow’s chairman and CEO.
“Increasing our equity stake in this iconic joint venture is a powerful example of our strategic partnership with Saudi Aramco and is yet another accelerator in Dow’s long-term growth strategy designed to capture growing consumer-led demand in our key end-markets of transportation, infrastructure, packaging, and consumer products in developing regions.”
Saudi Aramco President and CEO Amin H. Nasser said: “We are proud of our partnership with Dow given its preeminent stature among the world’s leading chemical companies. Dow’s larger stake in Sadara is an endorsement of the Kingdom’s vibrant ecosystem, and signals Dow’s confidence in our partnership as a model of mutually beneficial foreign direct investment. The time is right to fully leverage Dow’s global leadership to further contribute to the Kingdom’s economic transformation in line with Vision 2030.”
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 — currently operates 26 world-scale units that manufacture a portfolio of plastics and specialty chemicals.