Dow Chemical shares rose to a record high on Tuesday after the chemical company said it has agreed to a $20 billion deal with Dow Chemicals to develop and commercialize a new synthetic polymer.
The company also said that its board of directors approved the deal, which was approved by the company and the board of the U.S. Securities and Exchange Commission on Thursday.
Dow Chemists chairman and chief executive, Jeffrey Immelt, said in a statement that he was pleased to announce the agreement with Dow.
Dow Chemicals was founded in 1868 and today is the largest publicly traded publicly traded chemical company in the world, with sales of nearly $70 billion.
Its products include polymers, solvents, chemicals, and biogas, among others.
Dodd-Frank regulationThe agreement with the U:The Dow deal will help the company to develop a new polymer, called POMX, that it said would be useful for both its chemical synthesis and plastics and biowaste production.POMX is a highly flexible polymer that can be used for both chemical synthesis as well as in plastics and in biowastes, according to the company.
The company has been working to improve its POMx production process to better meet the requirements of plastics and the biowas, said Immelt in a prepared statement.
Dows polymer chemistry research has produced several other polymer chemistry products, including an innovative new type of carbon nanotube polymer, the company said.
Immelt added that the company was working on an alternative polymer that would be more environmentally friendly and would enable its plastics and biofuels production.DOW Chemicals has a long history of working with the Dow Chemical company, including a joint venture that developed its polyethylene resins, the Dow spokesman said.
The Dow Chemels board approved the joint venture last year.
The news comes as the Dow Chemies shares have fallen more than 13 percent since January.