Dow Chemical announced plans on July 19 to buy rival Rohm & Haas for $18.8 billion in cash, creating the world's leading specialty chemicals and materials company.
The deal includes three billion dollars in financing from billionaire Warren Buffett's Berkshire Hathaway and one billion from the Kuwait Investment Authority.
"The acquisition of Rohm & Haas is a defining step in our transformational strategy to shape the 'Dow of Tomorrow' -- a high value, diversified chemicals and materials company, creating the largest specialty chemicals company in the United States with a leading global position in performance products and advanced materials," said Andrew Liveris, Dow chairman and chief executive.
Liveris called Rohm & Haas "the ideal company to accelerate Dow's transformation."
The transaction, which has been approved by the boards of both companies, is subject to approval by Rohm and Haas shareholders and regulatory approvals, and is expected to be completed in early 2009.
Michigan-based Dow chemical has annual sales of $54 billion and 46,000 employees worldwide. Philadelphia-based Rohm & Haas had some $8.9 billion in 2007 revenues.
Copyright Agence France-Presse, 2008