There's no official word but according to one report, Dow Chemical Co is setting up a huge joint venture with India's largest petrochemicals maker, Reliance Industries Ltd. There was also speculation, however, about a possible LBO of Dow. The company's shares have gotten a boost as the various reports circulate. The Times of India said, without citing any sources, that Dow will spin off its $20 billion basic chemicals and plastics businesses and that Reliance will buy a 59% stake in the new company for about $12 billion, with Dow retaining the remaining 41% stake, valued at about $8 billion. As an article in Corporate Dealmaker last year showed, Dow has deep experience in joint venturing, with more than 75 of them around the world — most formed out of necessity, as the company works to get close to vital feedstocks. But if the Times report is accurate, a Reliance deal would be the biggest yet.

Join Corporate Dealmaker's LinkedIn forum