Dow and Saudi Aramco announced a non-binding Memorandum of Understanding (MOU) that sets forth a process for Dow to acquire an additional 15 % ownership interest from Saudi Aramco in Sadara Chemical Company (Sadara), a joint venture developed by the two companies. If the potential transaction is concluded as presently proposed, Dow and Saudi Aramco would each hold a 50 % equity stake in Sadara.

The potential equity equalization would occur following the later of two events: 1) the intended separation of the Materials Science Company, within 18 months after the close of the merger of equals between Dow and DuPont on August 31; 2) Sadara’s completion of the Creditors’ Reliability Test, which is part of the limited-recourse financing used to fund the Sadara project development.

The Sadara chemical complex―the largest of its kind built in a single phase―is currently operating all of its 26 world-scale units that manufacture a portfolio of valued-added performance plastics and specialty chemicals.

• Dow Chemical Company, Midland, MI, USA
• Saudi Arabian Oil Company (Saudi Aramco), Dhahran, Saudi Arabia