European Commision clears, Dow-Rohm and Haas deal

08 January 2009 21:25  [Source: ICIS news]

HOUSTON (ICIS news)--The European Commission has cleared the way for Dow Chemical’s pending acquisition of Rohm and Haas, the companies said on Thursday.

“The European Commission has determined that the pending acquisition of Rohm and Haas by the Dow Chemical Company …does not contravene EC competition law,” Rohm and Haas said in a statement. “With this decision, the transaction has obtained all necessary approvals in Europe.”

The transaction still requires the clearance of the US Federal Trade Commission, Rohm and Haas said.

Shares of Rohm and Haas on the New York Stock Exchange were trading at mid-afternoon at $61.50, up $1.50. Shares of Dow were trading at $15.63, down 45 cents.

Dow announced plans last year to acquire Rohm and Haas for $18.8bn (€13.9bn), but prospects for the deal were clouded by the collapse of Dow’s planned K-Dow joint with Kuwait’s Petrochemical Industries Co. (PIC).

Dow would have received $7.5bn in cash from PIC, as well as a $1.5bn cash distribution from K-Dow upon completion.

Dow is pursuing legal options against PIC for pulling out of the venture.

For more on Dow and Rohm and Haas visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

($1 = €0.74)

By: Brian Ford
+1 713 525 2653

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