Announced Action for August 30, 2005

Commission approval of proposed agreement amendments: The Commission has approved a petition from the Dow Chemical Corporation (Dow) requesting certain amendments to the “Ineos Agreement,” which is incorporated into the decision and order allowing the 2001 merger of Dow and Union Carbide. The final order in this matter contained terms designed to remedy the anticompetitive effects of the merger in markets that included ethanolamines and methyldiethanolamines (MDEA). The order required Dow to divest to Ineos both its global ethanolamines business, and Dow’s business related to the sale of MDEA sold under the Gas Spec trade name. On February 12, 2001, Dow divested the Dow Global Ethanolamines Business and the Dow Gas Spec MDEA Business to Ineos, in accordance with the terms of the Ineos Agreement.

Through its petition, Dow requested that the Commission approve an amended “GAS/SPEC Supply Agreement,” under which Dow supplies Ineos with GAS/SPEC solvent, solvent additive, and solvent MDEA. Ineos has agreed to this amendment, whose purpose, according to the respondent, is “to secure maximum availability of GAS/SPEC and solvent MDEA products to Ineos at fair prices and to reduce any unnecessary financial burden on Ineos.” In addition, Dow requested Commission approval of an amendment to the “EO Supply Agreement,” under which Dow supplies Ineos with ethylene oxide (EO) used to make ethanolamines at Ineos’ plant in Plaquemine, Louisiana. This amendment also has been approved by Ineos, and would, according to the respondent, “secure continuing maximum availability of EO to Ineos and limit the impact of future EO supply interruptions (if any) at Dow’s Plaquemine EO plant. ” Through the action announced today, the FTC has approved both proposed modifications.

The Commission vote granting Dow’s petition was 4-0. (Docket No. C-3999; the staff contact is Roberta S. Baruch, Bureau of Competition, 202-326-2861; see press releases dated February 5, 2001, and May 20, 2005.)

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.