DuPont and Dow have agreed measures by which each owner could leave the $1bn-turnover joint venture

DuPont and Dow have agreed measures by which each owner could leave the $1bn-turnover joint venture

DuPont and Dow have agreed measures by which each could exit the $1bn (E835m) turnover DuPont Dow Elastomers joint venture if they choose. According to a statement issued from DuPont’s Wilmington headquarters, the agreement gives Dow the option to acquire “in a cashless transaction to Dow, certain DDE assets related to ethylene and chlorinated elastomers”.

The statement continues: “If Dow exercises its option, DuPont will purchase Dow’s remaining equity interests in DDE.” News of the options accompanied details of an agreement by which DuPont will adopt the lead role in responding to the anti-trust allegations against DDE in the synthetic rubber market. It will also accept a “greater obligation to fund potential liabilities and costs.”

DuPont will fund all the potential DDE liabilities and costs up to $150m (E125m) and incur 75% of the liabilities above this figure. As a result, the company will take a first-quarter pre-tax charge of $150m (E125m).