Geneva-DuPont Co. is buying 100-percent control of elastomer producer DuPont Dow Elastomers llc after Dow Chemical Co. exercised its option to buy assets relating to ethylene and chlorinated elastomers from the venture, triggering an $87 million buyout by DuPont.
DuPont and Dow expect the transactions, which are subject to customary conditions, including applicable regulatory approvals, to close by June 30.
After the transaction, DuPont Dow Elastomers--a 50/50 joint venture dating back to 1996--will change its name and become a wholly owned DuPont subsidiary that will comprise the Neoprene polychloroprene rubber, Hypalon chlorosulfonated polyethylene, Kalrez perfluoroelastomer and Viton fluoroelastomer businesses, the companies said.
Dow said its option includes assets of the Engage polyolefin elastomer, Nordel EPDM and Tyrin chlorinated polyethylene product lines.
The deals relate to an agreement the partners reached last April after it was disclosed DuPont Dow was involved in a price-fixing investigation related to EPDM and their subsequent agreement to assign DuPont the lead responsibility for dealing with the antitrust investigations and price-fixing litigation.
DuPont subsequently disclosed it was taking a charge of about $150 million against first-quarter earnings to cover anticipated liability related to antitrust investigations and price-fixing litigation directed at DuPont Dow and later set aside $36 million in an escrow fund to settle a number of civil lawsuits against it pertaining to alleged price-fixing of polychloroprene.
Press release from DuPont
Press release from Dow Chemical