Discussions underway between Rohm & Haas and Dow Chemical Co.

09-Mar-09

Discussions are underway between Rohm and Haas and Dow Chemical Co. regarding litigation over their planned merger. A synopsis of the scenario so far: Last year, Dow agreed to buy Rohm & Haas for US$18.8 bln including debt, with Jan 27 as the closing deadline. Dow had planned to fund the deal by proceeds of a joint venture with Petrochemicals Industries Co. of Kuwait. However, the global financial crisis along with the collapse of the Kuwaiti joint venture led Dow to a tight spot. The company sought to delay the deal, in response to which Rohm & Haas has filed a lawsuit to force the deal, and a trial is reportedly set to start Monday.