DOW / UNION CARBIDE
Jumbo merger creates a colossus in polyethylene production
The roundabout keeps turning and turning: the latest spectacular mega-merger has now been announced between Dow Chemical Company (Midland, MI, USA) and Union Carbide Corp. (Danbury, CT, USA). With proforma sales of over USD 24bn (Dow 18bn, UC 6.5bn), this “new Dow” will become the second largest chemical group in the world after DuPont. The merger will be based on a share swap.
The mega-marriage will have a number of effects on the world polymer markets. With its “Unipol” process, UC is one of the central global licensers for polyolefin production and is regarded as the leader in metallocene catalysis technology. It also describes itself as one of the world´s biggest players on the PE market. UC has, for example, a 50% interest in the 1.6m t/y PE capacities of Polimeri Europa (Via Taramelli 26, I-20124 Milano) – partner: EniChem. In addition, UC owns capacities in the PP segment. Dow Plastics generates sales of over USD 9bn. According to internal statistics, Dow is the world market leader for PE and PS and also has significant capacities for PP and PET. The company is also heavily involved in the field of engineering plastics, including a PC production facility in Stade. Taken as a whole, Dow can probably rightly describe itself as the global plastic producer with the broadest product range.
One immediately striking consequence of the merger is the enormous widening of the lead which the world´s major player in the field of PE commodity plastics – especially LDPE – has over the other market players. It will take time to assess other effects which the merger will have on the market, because both companies will presumably need to first negotiate some of the details.
The mega-marriage will have a number of effects on the world polymer markets. With its “Unipol” process, UC is one of the central global licensers for polyolefin production and is regarded as the leader in metallocene catalysis technology. It also describes itself as one of the world´s biggest players on the PE market. UC has, for example, a 50% interest in the 1.6m t/y PE capacities of Polimeri Europa (Via Taramelli 26, I-20124 Milano) – partner: EniChem. In addition, UC owns capacities in the PP segment. Dow Plastics generates sales of over USD 9bn. According to internal statistics, Dow is the world market leader for PE and PS and also has significant capacities for PP and PET. The company is also heavily involved in the field of engineering plastics, including a PC production facility in Stade. Taken as a whole, Dow can probably rightly describe itself as the global plastic producer with the broadest product range.
One immediately striking consequence of the merger is the enormous widening of the lead which the world´s major player in the field of PE commodity plastics – especially LDPE – has over the other market players. It will take time to assess other effects which the merger will have on the market, because both companies will presumably need to first negotiate some of the details.
15.08.1999 Plasteurope.com [17872]
Published on 15.08.1999