Executive Summary The case refers to Dow Chemicals agitate for the privatization of Petroquimica Bahia Blanca S.A. (PBB) in 1995. PBB a producer of both Ethylene and polyethylene was being privatized by the Argentine government. Ethylene produced from Oil or inborn gas, was used to produce Polyethylene, the worlds around wide used plastic. Dow Chemicals generated revenues of approximately $20 billion from its 3 major(ip) businesses: Chemicals, Plastics and Agricultural products. Dow held the leading market position in legion(predicate) chemical product lines including Ethylene and Polyethylene. Dows upper anxiety in Latin America, including Oscar Vignart, anticipated continued improvement in tired of living, leading to increased demand for polyethylene in Argentina. aliment & packaging industries and supermarket sectors had experienced dramatic growth since 1991. This pass vox populi growth in Polyethylene demand made PBB a emfly attractive skill. The case discusse s Dow Quimica Argentinas military put for the bid for PBB in the privatization and also maturatement of an overall, three practiced stop strategy for development of polyethylene business in Argentina. Dow set the project step by step by edifice a cash flow model and indeed rivulet sensitivity analyses.
Even though there were many uncertainties and potential risk, Dow viewed the acquisition as their chance to bewilder the number-one impostor in the Latin American polyethylene industry. We recommend that Dow should stimulate PBB because the acquisition of PBB offers Dow once in the life time the prospect to becom e the leading polyethylene player in Latin A! merica. Introduction Dow had massive been interested in expanding its interests in Argentina. In the late 50s Dow urged the Argentine government to develop a petrochemical complex. In 1977 the government began development of the complex in association with topical anesthetic petrochemical private sector. This included the design of PBB. In addition to PBB, the complex...If you trust to get a expert essay, order it on our website: OrderCustomPaper.com
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