The Dow Chemical Company announced the agreement to sell its global Ethylene Acid Copolymers (EAA) and Ionomers business to SK Global Chemical Co., LTD., A subsidiary of SK Innovation , as part of the ongoing process to obtain approvals for the definitive merger between Dow and Dupont. The divestment will be subject to Dow and DuPont to close their merger operation, in addition to other conditions that include regulatory documentation and obligations related to labor and corporate law.
Dow is a leading producer of EAA copolymers, which sells under the PRIMACOR ™ brand in the Packaging and Specialty Plastics business. The divestment agreement affects one production plant in the Dow Tarragona Industrial Complex and another in Freeport, Texas, as well as the associated intellectual property and product trademarks.
Under the terms of the purchase agreement, SK Global Chemical will comply with certain contracts and agreements with both customers and suppliers. Both companies are working together to make the transition smoothly for all stakeholders.
Given the current state of the regulatory process, the closing of the merger between Dow and DuPont is expected to take place in the first half of 2017 under the usual conditions for its conclusion, which includes obtaining all regulatory authorizations . Dow and DuPont estimate that the planned operations to separate their businesses – in Agriculture, Materials Science and Specialty Products –will take place about 18 months after the close of the merger.
