US Dow completes Rohm and Haas acquisition

01 April 2009 19:38  [Source: ICIS news]

Dow buys Rohm and HaasHOUSTON (ICIS news)--US major Dow Chemical has completed on Wednesday its $78/share takeover of Rohm and Haas, meeting the deadline called for by a settlement agreement.

The acquired operations will be combined with Dow to be called Dow's Advanced Materials Division, the company said.

Rohm and Haas sued Dow in Delaware Chancery Court, after the company missed an earlier 27 January deadline to close the deal.

Under the settlement, the two largest shareholders of Rohm and Haas have agreed to buy $2.5bn (€1.9bn) in preferred equity to be issued by Dow, the company said.

In addition, Dow said it is exercising its option to have the Haas Family Trusts make another $500m investment in equity.

As such, Dow will now pay $63/share in cash and $15/share in preferred equity securities, the company said.

With the merger closed, Rohm and Haas stock will cease trading.

Shares of Dow traded at $8.68 as of 13:38 hours New York time (17:38 GMT), up 2.97%.

 ($1 = €0.75)

For more on Dow or Rohm and Haas visit ICIS company intelligence
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By: Al Greenwood
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