Dow Chemical (DOW) will be paid $2.16 billion in damages by Kuwait’s state-run chemical company, Kuwait Petroleum, under an arbitrator’s ruling that found Dow’s planned plastics joint venture in 2008 was wrongly terminated.
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The ruling by the International Chamber of Commerce’s International Court, which is final and binding, is believed to be one of the largest-ever arbitration awards, according to a report by Reuters citing Dow’s law firm, Shearman and Sterling.
The case ends a multi-year riff between the two caused when Kuwait’s Petrochemical Industries pulled out of the planned $17.4 billion “K-Dow” petrochemical joint venture as the global economy started to tank four years ago.
Dow, which has been doing business with Kuwait for nearly 40 years and has several other joint ventures with the state-run company, had sued for more than $2 billion in damages incurred when Petrochemical violated the agreement.
“This outcome brings resolution and closure to the issue,” Dow CEO Andrew Liveris said in a statement. “We remain focused on continuing to move forward with our transformation and profitable business partnerships - both in Kuwait and around the world.”