Boston, MA 10/06/2014 (wallstreetpr) – According to reports, Exxon Mobil Corporation (NYSE:XOM) and The Dow Chemical Company (NYSE:DOW) have signed an agreement deal. According to it, Univation Technologies will be put under DOW’s control as one of its subsidiaries. Currently, Univaition Technologies is a 50:50 venture of both the companies. To execute the deal successfully, both the companies have agreed to enter into a definitive agreement. As per the reports, the ownership of the company will be transferred to DOW through complete restructuring.
Insights of the matter:
As soon as the agreement becomes active, Univation Technologies will become a wholly owned subsidiary of The Dow Chemical Company (NYSE:DOW). It will be added to the Plastics operating segment of the company. According to Cindy Shulman, President of Univation Technologies, the company has done pretty well over these years in order to become the market leader. It has achieved this milestone through offering high quality leading gas-phase-polyethylene-process technology to all the clients spread across the country. As DOW has decided to take full control over the company; therefore, it would look forward to the value to DOW’s plastic operating segment.
As per the reports, Univation Technologies is the sole licensor of the UNIPO PE Process Technology. It does not only manufacture PE catalysts for the UNIPOL PE Process, but also develop it completely and then sell it across the globe. Even after the complete take-over by DOW, it will continue to sell the licensing facility of its UNIPOL PE Process Technology to all the clients. Two of the major licenses that it will be providing are high-density polyethylene and linear low-density polyethylene. It will also continue the development work of UCAT Conventiona, XCAT Metallocene, ACCLAIM Advanced Unimodal and PRODIGY Bimodal Catalysts.
Initial processing of the transaction is done and both the companies expect it to be closed by the end of 2014, provided all regulatory approvals are received on time.
