By SAABIRA CHAUDHURI
Dow Chemical has been awarded an additional $318 million in
an arbitration case with Petrochemical Industries Co. of
The additional award is tied to a dispute over a scuttled
multibillion-dollar joint venture in 2008 that almost derailed
the chemical company's efforts to complete a huge
The award, from the International Court of Arbitration of
the International Chamber of Commerce, brings the total amount
Dow Chemical has been awarded to $2.48 billion and is the last
step in the disciplined arbitration process, bringing the
process to an end. The partial award of $2.16 billion was
announced last May.
"Payment of these damages of nearly $2.5 billion will allow
Dow to accelerate its priority uses for cash by further
strengthening our balance sheet," Dow CEO Andrew N. Liveris
said. "Dow and Kuwait share a long history and strong
partnership, and this award ruling brings suitable closure to
the arbitration process."
In December 2008, Dow said Kuwaiti officials informed it the
Persian Gulf country was scrapping a deal under which the
state-owned petroleum company was to pay Dow Chemical $7.5
billion for a 50% stake in several chemical plants.
Dow intended to use that money to help finance its $15.3
billion purchase of Rohm & Haas Co., which makes coatings
and electronic materials.
The decision -- by Kuwait's top petroleum-policy council to
bail out came amid fears that plunging oil prices had made the
deal less attractive -- came less than a week before the deal
was to become effective. Both Dow and the Kuwaiti company were
also planning to collect $1.5 billion apiece from the joint
venture, known as K-Dow Petrochemicals.
Earlier that same month, Dow Chemical had renegotiated the
deal and agreed to accept a total of $9 billion, including the
money it was to get from K-Dow, about $500 million less than it
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