Dow to Sell EEA Copolymers to SK Global
Dow Chemical has announced plans to sell its ethylene acrylic acid (EEA) copolymers business to South Korea’s SK Global Chemical. The move is part of a plan to shed assets and facilitate antitrust approval prior to its merger with DuPont. Most of the merger-related asset sales are expected to be in agrochemicals, but DuPont – along with France’s Arkema, and the Japanese companies NUC and MDP – is a competitor.
Citing sources, the news agency Bloomberg in October said Dow was prepared to shed its business with the copolymers, used primarily in food packaging. The chemical giant is a leading player in the market with sales of around $150 million annually for its “Primacor” brand. The business is part of its Packaging and Specialty Plastics division within its Performance Plastics operating segment.
Australia’s regulatory authority said in early November it was concerned about the DowDuPont merger’s s effect on competition for ionomers and acid copolymers as well as other plastics-related products, as the two companies may be the only suppliers of these materials to Australian plastics manufacturers.
Dow said the divestment, which includes production facilities in Freeport, Texas and Tarragona, Spain, will be contingent on Dow and DuPont closing their merger transaction, in addition to other closing conditions associated intellectual property and product trademarks. SK Global will honor certain customer and supplier contracts and other agreements, the companies said. Financial terms were not disclosed.