Dow weighs exit from $20 billion partnership with Aramco, Bloomberg News reports (updated)

Dow

09/09/2026 12:58

Updates shares, adds Aramco's response, rewrites throughout
Sept 9 (Reuters) - Dow DOW.N is considering an exit from its $20 billion chemicals partnership with Saudi Aramco 2222.SE, Bloomberg News reported, citing people familiar with the matter, as the U.S. company grapples with a prolonged industry downturn and the impact of the Middle East conflict.
Aramco could potentially use the opportunity to buy Dow's 35% stake in the joint venture, Sadara Chemical Co, the report said on Wednesday, adding that other strategic or financial investors could also bid for the chemical maker's holding. No final decision has been made, according to the report.
Dow did not immediately respond to Reuters' request for comment. Aramco declined to comment.
The U.S.-Israeli war on Iran has disrupted oil and petrochemical flows, constrained supply chains, increased transportation and operating costs. It has also directly impacted Dow's joint ventures in the region, the chemical maker said in July.
The war added pressure to an industry that was already struggling with stagnant demand, rising production costs in Europe, changing regulatory requirements and persistent global oversupply.
Dow has been reviewing its operations in recent years to improve profitability, including European assets in 2024 and non-core holdings across its global portfolio, while announcing plans in January to cut 13% of its workforce.

        The joint venture operates a complex in the Saudi city of Jubail with annual production capacity of over 3 million metric tons of chemicals and plastics. 
Production at the complex was temporarily shut down earlier this year after the Middle East conflict led to supply chain disruptions.
As of June 30, Dow said it had a negative investment balance of $793 million in Sadara Chemical Co. The chemicals maker suspended recognition of losses from the venture during the first quarter of 2026.
Shares of Dow were down more than 1%. 


 (Reporting by Vallari Srivastava in Bengaluru, additional reporting by Pranav Mathur and Maha El Dahan; Editing by Shilpi Majumdar ad Leroy Leo)
 ((Srivastava.Vallari@thomsonreuters.com;))