US Dow clarifies comments on possible acquisitions

23 September 2011 00:12  [Source: ICIS news]

HOUSTON (ICIS)--US Dow Chemical provided no specifics on Thursday after an executive was quoted in a French newspaper saying the company may make some acquisitions in Asia and Latin America in 2012.

Instead, the company reiterated that its primary goals in the near term include attaining an annual target of $10bn (€7.3bn) in earnings before interest, taxes, depreciation and amortisation (EBITDA), as well as a goal of 40% net debt to capital by the end of 2012.

French newspaper “La Tribune” on Thursday quoted executive Jerome Peribere saying, “We have reduced our debt by $4bn in the first half of the year. But we have several billion to put towards acquisitions,” according to Reuters.

Dow spokesman Greg Baldwin said the company’s investment strategy includes capital expenditures in its existing businesses and low-cost, low-risk joint ventures that are located in advantaged regions.

For example, Dow recently partnered with Saudi Aramco to form Sadara Chemical in Saudi Arabia, where they will build $20bn chemical complex.

Dow also invests in “tuck-in acquisitions of modest proportion but of succinct fit within our integration strategy,” Baldwin added.

($1 = €0.73)

For more on Dow visit ICIS company intelligence

By: Bobbie Clark
+1 713 525 2653

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