Dow Chemical has announced plans to raise its stake in Sadara Chemical, a joint venture with Saudi Aramco, to 50%. Both companies have signed a non-binding Memorandum of Understanding (MoU) that sets in motion a process by which Dow can acquire an additional 15% share, giving both companies equal ownership of the venture.  The US group currently holds 35% of Sadara, with the Saudi energy giant holding 65%.

“The time is right to fully leverage Dow’s global leadership to further contribute to the Kingdom’s economic transformation,” said Saudi Aramco’s CEO, Amin Nasser.

Andrew Liveris, Dow’s chairman and CEO, said that increasing its equity stake is “designed to capture growing consumer-led demand in our key end-markets of transportation, infrastructure, packaging, and consumer products in developing regions.”

The transaction is planned to occur following the later of two events: the intended separation of Dow’s Materials Science division within 18 months after the merger with DuPont closes on Aug. 31; and Sadara’s completion of a creditors’ reliability test, part of the limited-recourse  financing used to fund construction of the complex.

Financial terms of the transaction were not disclosed. The financial structure and governance of Sadara will remain unchanged.

All 26 units of the Sadara complex at Al Jubail are now on stream, producing more than 3m t/y of petrochemicals.

Saudi Arabia is planning to sell about 5% of Saudi Aramco in an initial public offering (ipo ) next year. London and New York are said to be vying to list the oil company in what is expected to be the world’s largest ipo.