SK Innovation buys Dow Chemical's ethylene acrylic acid unit for $370 MM
SEOUL (Reuters) -- South Korea's SK Innovation said on Thursday it would acquire Dow Chemical Co's ethylene acrylic acid (EAA) business for $370 million, a move that will expand its range of high value-added chemical products.
Dow said the sale was part of the ongoing regulatory process for its $130 billion merger with DuPont and that the divestiture would be "conditioned" on the two companies closing their deal.
The merger of Dow and DuPont, announced in December 2015, has drawn regulatory scrutiny, particularly in the European Union.
SK Innovation said in January that it would invest up to $2.5 billion in chemicals, oil exploration and battery businesses to spur growth.
The acquisition, made through its unit SK Global Chemical Co Ltd, will include Dow Chemical's EAA business in the United States and Spain.
"We will continue strategic investments to upgrade our business structure and in the long term we aim to be the leader in high-value added chemicals for emerging markets including China," Kim HyungKun, president of SK Global Chemical, said in a statement.
Ethylene acrylic acid is mainly used as an adhesive for wrapping products such as aluminum foil.
Reporting by Jane Chung in SEOUL and Arathy S Nair in Bengaluru; Editing by Stephen Coates, Edwina Gibbs and Anil D'Silva
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