The rumours about a Reliance Industries joint venture with Dow Chemicals have been flying thick and fast. Andrew Liveris, Dow's CEO has ruled out any big bang M&A as part of Dow's growth strategy, reports CNBC-TV18.
Liveris is quoted as saying," It doesn't need just one big-bang answer."
But the Dow CEO hasn't ruled out potential joint ventures. Dow already has about 60 M&A deals in the works right now - all part of a strategy to reduce broad fluctuations in earnings. Those 60 M&A deals may include one with Reliance, but Dow won't confirm or deny that.
But Liveris did say in a January earnings call that his company is considering joint ventures for specific products like polystyrene and polypropylene resin production in order to access cheaper raw materials.
So maybe that could be what the Reliance deal is all about - specific product oriented JVs