10 July 2008 12:45 [Source: ICIS news]
Dow will pay $78/share for the Philadelphia-based company and contribute its coatings, biocides and personal care operations to the deal to create a $13bn (€8.3bn) turnover business.
The transaction marks a decisive move in Dow’s transformation into an earnings growth company with reduced cyclicality, the chemical giant said in a statement.
“After an extensive analysis of acquisition opportunities in the marketplace, it became clear that Rohm and Haas is the ideal company to accelerate Dow’s transformation,” Dow chief executive Andrew Liveris said.
“The addition of Rohm and Haas’ portfolio is game-changing for Dow, enabling us to accelerate Dow’s transformation,” he added.
Dow has yet to finalise a joint venture with the Petrochemicals Industries Company (PIC) of ?xml:namespace>
But with the collective impact of these two deals, performance productions and advanced materials will account for 69% of Dow’s total sales on a 2007 pro forma basis compared with 51% before, Dow said.
Dow shares were trading at €21 on Europe's Xetra exchange, down €1.07 or 4.85% on the previous close.
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