Kuwait's Boubyan Petrochemical Co has said that its affiliate Equate had signed a $3.2-billion deal to buy ME Global from Dow Chemical of the United States and a subsidiary of state-run Kuwait Petroleum Corp.
Under the non-binding agreement, about $200 million of the total value would go towards paying down loans and commitments of ME Global, Boubyan said in a statement to the Kuwaiti bourse.
ME Global is a 50-50 ethylene glycol producing joint venture between Dow and Petrochemical Industries Co, a unit of Kuwait Petroleum. Boubyan owns nine per cent of Equate.
Once the deal is finalised, Boubyan is not expected to provide any financing to or inject any funds into Equate, the statement said.
Last November, Dow said that as part of a $7-8.5 billion divestment plan, it would reduce its equity positions in all of its Kuwaiti ventures in order to release capital for other strategic purposes.