A month ago, after the collapse of the K-Dow deal, the blog suggested that Dow would need to move quickly to a Plan B. It added that “nobody would be very surprised if it now sought to renegotiate the proposed Rohm & Haas acquisition”. This now seems to be underway, judging by two pieces of […]
Tag Archives | Dow Chemical
Over the last few weeks, INEOS had to scramble to get a covenant waiver from its lenders, and Lyondell went into Chapter 11. Now Dow’s debt is facing a potential cut to junk status from the main ratings agencies. Dow’s rating has already been cut, following the collapse of the K-Dow deal with Kuwait. And […]
2008 has not been a good year for M&A in the chemical sector. First, there was the collapse of Hexion’s Huntsman acquisition. Today, the Kuwait government has signalled its intention to “scrap” its $17.4bn deal with Dow to form K-Dow. This is a quite extraordinary decision by a major Middle East government, especially as it […]
Yesterday, Dow announced its new structure post the K-Dow JV and the planned acquisition of Rohm & Haas. This covered two main elements: • Implementation of November’s cost reduction announcement • Dow’s new organisation (the chart above) The cost reductions were severe, with a headline 11% of staff facing redundancy. 20 plants in “high-cost areas” […]
Foresight, and long-term relationships, have paid off for Dow. Yesterday, CEO Andrew Liveris announced that a binding agreement has now been signed with Kuwait’s PIC to form K-Dow Petrochemicals. PIC will pay $2bn less for their stake than originally agreed a year ago. This represents an exceptionally good outcome for Dow, given what has happened […]
Back in August, the blog noted that BASF chairman Jurgen Hambrecht was forecasting that “the world will still continue to grow respectably”, although he foresaw a temporary slowdown into H1 2009. Yesterday, however, this mood of relative optimism had disappeared as BASF announced Q3 results. Hambrecht is now forecasting, along with Dow’s Andrew Liveris, that […]
Dow’s potential interest in Rohm & Haas had been much rumoured since December, when it announced the petchem/polymer JV with Kuwait’s PIC. That deal has yet to close, but further evidence of the growing link with Kuwait comes with the news that the Kuwait Investment Authority will invest $1bn as part of Dow’s financing for […]
Its now a year since the blog started. Since then, 213 postings have appeared. It is now read in 72 countries and 620 cities (shown above). Most encouragingly, readership continues to steadily increase. Since January, it has risen a further 301%. The blog’s aim is to identify ‘the influences that may shape the chemical industry […]
US economic conditions are ‘ominous”, and may worsen into 2009, according to Dow CEO, Andrew Liveris. “A month ago we might have said … the US slowdown could be bottoming, but I don’t think it is bottoming,” Liveris said in response to analysts’ questions at an investor conference in New York. He added that “I […]
Dow today announced that it is raising prices for ‘all of its products by up to 20 percent – depending on their exposure to rising energy, feedstock and transportation costs – and will review all terms to all customers’. Dow CEO, Andrew Liveris, said that Dow’s ‘first quarter feedstock and energy bill leapt a staggering […]
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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.
The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.
Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.