Dow concludes acquisition of Rohm and Haas

03-Apr-09

Dow Chemical Co. has concluded acquisition of Rohm and Haas Co. 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 filed a lawsuit to force the deal. Dow and Rohm & Haas reached an eleventh hour agreement that will finally see the chemicals giant go ahead with its acquisition in a deal scheduled to close on 1 April. The terms of the settlement involve a new investment in Dow of US$2.5 bln and, at Dow's option, an additional US$500 mln by the two largest shareholders of Rohm and Haas - the Haas Family Trusts and Paulson & Co. The other shareholders will receive the original cash consideration of US$78 per share.