Dow to acquire Rohm & Haas Co

As a further move by Dow into the higher-margin specialty chemicals market, it is to acquire Rohm & Haas Co. Rohm & Haas Co. shareholders have approved a US$15.3 bln buyout. Including debt, the final price tag for the specialty chemicals maker is expected to be about US$18.8 bln. Shareholders will get US$78 in cash for each share they own. The deal is subject to regulatory approval and is expected to close in early 2009. Rohm & Haas will become a subsidiary of Dow, and its shares will not be traded separately. Dow will keep the Rohm & Haas name, and will use existing facilities to form an advanced materials company with annual sales of about US$13 bln, Two Rohm & Haas directors will join Dow´s board, bringing its total size to 14 members. The Haas family, descendants of one of the company´s founders, holds about 65 mln shares, a 33% stake worth nearly US$5.1 bln based on the purchase price.