26 January 2009 14:53 [Source: ICIS news]
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LONDON (ICIS news)--Dow Chemical does not intend to close its proposed $18.8bn (€14.5bn) acquisition of US speciality chemicals group Rohm and Haas before the Tuesday 27 January deadline, Rohm and Haas said in a statement on Monday.
The deal was cleared by the US Federal Trade Commission (FTC) on Friday, starting a countdown of two business days for the merger to close.
The deal was approved after Dow and the FTC reached an agreement on the commission's concerns that the merged company would be anti-competitive and violate federal law.
Dow agreed to sell several of its businesses to a buyer that the FTC will approve. The businesses include Dow's acrylic monomer, hollow-sphere particle and acrylic latex polymer operations.
Dow had a 10 January deadline to close the $78/share deal, according to the merger agreement. For each day after the deadline, Dow will pay Rohm and Haas about $3.35m in late fees, according to the agreement.
Credit Suisse analyst John McNulty on Friday predicted the deal would take longer than two business days to push through after FTC clearance, but thought the chances of the merger falling through were less than 5%.
($1 = €0.77)
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