Citation
(2008), "Dow to buy Rohm and Haas", Anti-Corrosion Methods and Materials, Vol. 55 No. 6. https://doi.org/10.1108/acmm.2008.12855fab.007
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited
Dow to buy Rohm and Haas
Article Type: Industrial news From: Anti-Corrosion Methods and Materials, Volume 55, Issue 6
The Dow Chemical Co. and Rohm and Haas have announced a definitive agreement under which Dow will acquire Rohm and Haas for an estimated $15.4 billion.
The transaction marks a decisive move in Dow’s transformation into an earnings growth company with reduced cyclicality. Last December, Dow announced a joint venture with Petrochemical Industries Co. of the State of Kuwait (PIC). With the collective impact of these two deals, performance products and advanced materials will represent 69 percent of Dow’s total sales, on a 2007 pro forma basis, compared with 51 percent prior to these transactions.
Andrew N. Liveris, Dow chairman and CEO, commented, “The acquisition of Rohm and Haas is a defining step in our transformational strategy to shape the “Dow of Tomorrow,” a high-value, diversified chemicals and materials company, creating the largest specialty chemicals company in the US with a leading global position in performance products and advanced materials.”
Rohm and Haas provides Dow with an excellent position in a number of industry segments, most notably in the electronic materials and coatings segments. In addition to its platforms in these two segments, Rohm and Haas has a strong presence in a number of other areas such as water solutions, adhesives, personal care, biocides, and building and packaging materials.
Dow will establish an advanced materials business unit at Rohm and Haas’ current headquarters in Philadelphia and intends to contribute complementary Dow businesses to Rohm and Haas’ existing portfolio, such as coatings, biocides and personal care. The total revenue of this new unit will approach $13 billion.
The transaction, which has been unanimously approved by the Boards of Directors of both companies, remains subject to approval by Rohm and Haas shareholders, customary conditions and receipt of regulatory approvals. The companies are targeting completion of the transaction by early 2009.
More information is available at: www.PCImag.com