Dow Chemical Completes Deal for Rohm & Haas

April 2, 2009
Acquisition valued at $18 billion

Creating a major global specialty chemicals and materials company, Dow Chemical said on April 2 it completed its acquisition of rival Rohm & Haas.

"Our first critical task is to ensure a seamless integration of Rohm & Haas that maximizes the synergies and opportunities offered by this transaction," said Dow CEO Andrew Liveris.

Dow Chemical, the largest U.S. chemical maker, finalized the deal earlier this month to acquire Rohm & Haas for the price originally announced in July, $78 dollars a share, which values the Pennsylvania-based specialty chemicals maker at $18 billion.

The completion came after legal wrangling. Rohm & Haas filed suit against Dow after the chemical giant said it was unable to proceed with the acquisition.

The takeover deal hit turbulence after Kuwait's state-owned Petrochemicals Industries in December scrapped a joint venture with Dow that would have netted the U.S. firm $7.5 billion, citing unfavorable economic conditions due to the global financial crisis. Dow subsequently said it could not meet a January 27 deadline for its takeover, citing "unacceptable uncertainties" on financing.

Under the terms of the settlement deal, the two largest shareholders in Rohm & Haas have agreed to inject up to three billion dollars into the Midland, Mich.-based company by buying preferred and convertible stocks.

Copyright Agence France-Presse, 2009

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!