07 May 2013 15:43 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical on Tuesday confirmed that it received a $2.2bn (€1.7bn) cash payment from Petrochemical Industries Company of Kuwait (PIC).
The payment completes final resolution of a dispute which arose after PIC in 2008 pulled out of the proposed K-Dow joint venture with Dow Chemical.
"Payment reflects the full damages awarded by the International Chamber of Commerce, as well as recovery of Dow’s costs," Dow said.
Dow will use the cash to pay down debt and reward shareholders, it added.
"Dow and Kuwait share a long history, and payment of this award brings final and appropriate resolution and closure to the issue," said Dow CEO Andrew Liveris.
"Our partnership with Kuwait includes several industry-leading joint ventures, which are valuable assets in Dow’s portfolio and have consistently returned accretive equity earnings to Dow," Liveris said.
"We continue to look for ways to strengthen our relationships within the country for the benefit of our partners and Dow shareholders," he added.
($1 = €0.76)
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