rP os t 9-204-021 REV: MARCH 31‚ 2006 MIHIR A. DESAI Dow Chemical’s Bid for the Privatization of PBB in Argentina op yo On November 10‚ 1995‚ Oscar Vignart‚ vice president of business development for Latin America for Dow Chemical Company (Dow)‚ and Luis Marcer‚ CFO of Dow Química Argentina‚ considered the bidding price on Petroquímica Bahia Blanca S.A. (PBB)‚ which was being privatized by the Argentine government. PBB produced both ethylene and polyethylene. It was part of a petrochemical complex
Premium Ethylene Dow Chemical Company Variable cost
Dow Chemical By Kai Draaisma Laurens de Blij Diedrik Oost Eva Sloff Lesley Flohil 13-11-2012 Duisenberg School of Finance Executive summary 1. Summary of Facts. With an annual revenue of $20.2 billion Dow held the leading market position worldwide in ethylene and polyethylene (exhibit 1b). To consolidate all of Bahia Blanca’s polyethylene activity under Dow’s control a three-stage plan was developed. The first stage involved taking control of PBB‚ the second stage involved
Premium Risk United States dollar Risk management
Dow Chemical Case Question 1 Polyethylene is the world’s most widely used plastic. Polyethylene plastic’s principal application was in packaging‚ from trash bags to milk jugs. It was widely used in the manufacture of everything from trash bags‚ picnic cutlery and garbage pails‚ to plastic toys. Polyethylene also replaced glass‚ wood‚ and metal in certain applications. There were three types of polyethylene‚ Low-density polyethylene‚ High density polyethylene and Low linear density polyethylene
Premium Net present value Cash flow Discounted cash flow
Dow Chemical Case When Petroquímica Bahia Blanca S.A. (PBB) began the process of becoming privatized by the Argentine government‚ Dow Chemicals saw the acquisition of this company as a golden opportunity to become the leading polyethylene player in Latin America. Dow Chemical’s was already a major player in the chemicals (ethylene)‚ plastics (polyethylene)‚ and agricultural products industries holding position as a low-cost producer. Breaking each segment of their business down into
Premium Discounted cash flow Foreign exchange market Net present value
Faculty of Business Administration Academic Year 2014-2015 MBA 6503 Organizational Studies Case Report: DOW CHEMICAL: INNOVATING FOR SUSTAINABILITY By Vi Nguyen Student # 3503832 Instructor: Prof. Doug Flint October‚ 2014 Background on Dow Chemical Company (Dow) Dow‚ a multinational corporation based in Midland of Michigan in the United State‚ was R&D-intensive and diversified-industry leader in chemistries‚ advanced materials‚ and agro-sciences with technology-based products and
Premium Maslow's hierarchy of needs Motivation Dow Chemical Company
entrepreneurship at the Dow Chemical Company Dow Chemical Company Description Dow Chemical is a multi-national chemical manufacturing company‚ specifically serving various consumer markets with innovative chemicals and plastics products. With net profit margins dropping over a period of time‚ the firm had prioritized growth initiatives in the early 2000s. The emergence of the internet had empowered start-ups to disrupt the chemical manufacturing industry
Premium Entrepreneurship Polystyrene Management
Introduction The case presents an American company Dow‚ producer of commodity chemicals‚ who is in the final stages of acquiring another company Rohm and Haas. Dow’s CEO has been working for four years to transform Dow from a producer of low-value‚ highly cyclical commodity chemicals to a producer of high-value‚ specialty chemicals and advanced materials. Rohm is a perfect match for Dow in respect of the strategic and financial perspective. Dow is also pursuing another key deal with Kuwait’s Petrochemical
Premium Stock Dow Chemical Company Stock market
Introduction The project provides Dow Chemical with a once-in-a-lifetime opportunity to become the leading petrochemical company in Argentina as well as in Latin America. In addition‚ the petrochemical sector in Argentina is also an oligopoly‚ posing a low business risk for this project. 1.1 Key advantages of the Bahia Blanca petrochemical pole • The PBB cracker is gas-based making it less costly to operate as compared to a naphtha-based cracker; • There is an excess demand for Polyethylene
Premium Argentina Foreign exchange reserves Risk
Corporate Finance case 2 Dow’s Bid for Rohm and Haas Justin Overtoom 6132111 Rutger Go 10782923 Binghong Cheng 10824588 Xianjing Cai 10874089 23-02-2015Introduction Dow started as a manufacturer of commercial bleach in 1897‚ and was founded by Herbert Dow. He merged his company in 1900 with Midland Chemical‚ which lead to diversification of his portfolio to agricultural and food products. In 1912‚ Dow started to pay dividends every quarter without any reductions or interruptions. By doing
Premium Dow Chemical Company
9 - 2 0 1- 0 3 3 REV. AUGUST 6‚ 2003 GEORGE CHACKO PETER TUFANO Diageo plc Ian Cray‚ Diageo plc’s Treasurer‚ looked out of his office window onto the busy streets of London in October 2000. The London-based consumer goods company Diageo had recently announced its intention to sell its packaged food subsidiary‚ Pillsbury‚ to General Mills. Earlier in the year‚ Diageo also announced its intent to sell 20% of its Burger King subsidiary through an initial public offering during 2001‚ to
Premium Asset Bond Debt