Dow Weighs Sale of Stake in $20B Sadara Venture

Dow is reportedly considering selling its roughly 35% stake in Sadara Chemical Co., its $20 billion chemicals joint venture with Saudi Aramco, as the U.S. company restructures its portfolio amid a prolonged industry downturn. Aramco could acquire the stake and increase its control, while other strategic or financial investors may also bid; no final decision has been made. The potential sale follows weak chemical demand, global overcapacity, elevated costs and conflict-related disruptions that temporarily shut Sadara and increased logistics pressures. Completed in 2015, Sadara is one of the world’s largest integrated chemical complexes, with 26 plants capable of producing more than 3 million metric tons of products annually. A divestment would help Dow streamline operations and improve its balance sheet while giving Aramco an opportunity to consolidate a major Saudi petrochemical asset.