Dow Chemical Co, the largest US chemical maker, said Tuesday
it plans to seek more than 2.5 billion dollars in damages from Kuwait for
cancelling a joint venture just days before its launch, dpa reported.
A 17.4-billion-dollar deal between Kuwait's state-run Petrochemical Industries
Co (PIC) and Dow fell through on December 28. The joint venture would have
enabled Dow to acquire rival Rohm & Haas, the world's largest maker of acrylic
paint ingredients. Dow would have gained about 7.5 billion dollars after taxes
from Kuwait's investment.
PIC was to buy a 50-per-cent stake in Dow's commodity plastics unit. The
agreement failed amid opposition from Kuwaiti parliamentarians who claimed it
was overpriced.
PIC chairman Maha Mulla Hussein said Kuwait had not breached any contract.
"The action we did is according to the agreement," he told Bloomberg
financial news agency.
Dow is to seek damages from Kuwait in court as well as in the International
Chamber of Commerce in London, which will not be limited to the
2.5-billion-dollar termination fee, Dow CEO Andrew Liveris said.
"We are seeking multiple billions of dollars in remedy and we will pursue
all legal options to get that ... There is a breach of a commercial
contract," Liveris told Bloomberg.
Dow, which is considering new partners for its plastics unit, said it was open
to going ahead with the joint venture if Kuwait reversed its decision.