Failure of the Joint Venture

Executive Summary On November 28, 2008, The Dow Chemical Company entered into a Joint Venture with State of Kuwait run Petrochemical Industries Company ("PIC"). “PIC” is a wholly owned subsidiary of State owned Kuwait Petroleum Corporation ("KPC"). to launch K-Dow Petrochemicals, a planned joint venture. PIC was to have paid pay Dow $7.5 billion US dollars for its stake. The deal was approved by Kuwait’s Supreme Petroleum Council (SPC). The head of the SPC is the Prime Minister of Kuwait The venture was to manufacture and market polyethylene (PE), ethyleneamines, ethanolamines, polypropylene (PP), and polycarbonate and related licensing and catalyst technologies. PE and PP comprise more than half of world polymer demand.2 With annual sales of $54 billion and 46,000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the “ Human Element ” to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.2 As part of the Kuwait Petroleum Corporation family, PIC is at the heart of the national strategy to maximize the value of Kuwait's hydrocarbon resources, and is focused on increasing its petrochemical contributions. It is focused on strategic growth inside and outside Kuwait through diversification, further use of strategic alliances, as well as pursuing successful joint ventures such as EQUATE, GPIC and MEGlobal.2 Kuwait Petroleum Corporation (KPC) is the state-owned entity responsible for Kuwait's hydrocarbon interests throughout the world. As part of the