oiler49er

Dow Chemical JV with Saudi Aramco: Could It Be?

domink is correct. the $26bln cited in the reference article is for the existing JV partnership at Ras Tanura.

To add to domink's remarks about Dow's balance sheet, I think the impact of the Rohm & Hass purchase must be considered as well. Berkshire and Kuwait will be kicking in about $4bln but much of it will fall under Dow's $15bln in cash. Now Moody's has taken notice and put Dow's credit rating under review. This turn of events raises concerns that Dow's funding for equity participation in the JV may hit some road blocks.

I am a firm believer that the Dow-Aramco partnership will be a match made in heaven when it comes to producing commodity chemicals, but whether they can get there is another story.