Kuwait-Dow Breakup: Regulatory Concerns Become a Two-Way Street

In late 2007, I lauded the announced JV between Kuwait Petroleum and Dow Chemicals (dubbed “K-Dow”) in a letter to the Financial Times. I cited the planned venture as an example of a sound partnership “enabling Dow and KPC to build a stronger business than either could do on its own.” A year later, Kuwait pulled out of the transaction unilaterally. The reason cited in reports was that the Kuwaiti press and certain parliamentarians had voiced concerns about the deal, and were intent on probing the transaction with an eye to potentially blocking it.