Adhesives Magazine

Dow Completes Merger With Union Carbide

March 27, 2001
J. Pedro Reinhard, Dow Chemical executive vice president and CFO, speaks to the media about the completion of Dow's merger with Union Carbide.
MIDLAND, Mich. — The Dow Chemical Co. completed its $7.3-billion acquisition of Union Carbide Corp., Danbury, Conn., after agreeing to a Federal Trade Commission (FTC) stipulation that Dow must divest intellectual property related to the production of plastic trash bags. In addition, Dow is required to divest its ethylene-amines, ethanolamines and methyldiethanolamine business, which involves the manufacture of lubricating-oil additives, personal-care products, fabric softeners, herbicides and fungicides, among other products. In the stock transaction, Union Carbide becomes a wholly owned subsidiary of Dow, which will remain headquartered in Midland, Mich.

The merger creates the second-biggest U.S. chemical company, behind DuPont. Dow is a major supplier of raw materials, including epoxy and latex resins, solvents, acrylic monomers, polyurethane resins, and a variety of additives. Union Carbide is a major supplier of coatings resins, emulsions, solvents, intermediates and additives.

Dow has announced an agreement to sell its global ethyleneamines business to a subsidiary of Huntsman Corp. Terms were not disclosed. Huntsman said the acquisition provides a complement to the company’s existing amines business and expands its global polyurethanes business by adding polyol and urethane-catalyst production.

Separately, Dow reportedly will sell its ethanolamines business to Ineos Acrylics UK Ltd.