Dow acquires Rohm and Haas

Dow has announced that it has reached agreement with Rohm and Haas to acquire its remaining shares for USD 78 (total transaction of USD 18.8 bn). This makes Dow the 'world's leading speciality chemicals and advanced materials company.'

Last December, Dow announced a joint venture with Petrochemical Industries Company of the State of Kuwait (PIC), and the collective impact of these two deals, means that the performance products and advanced materials will represent 69 percent of Dow’s total sales (they were 51 percent prior to these transactions).

Financing for the acquisition includes an equity investment by Berkshire Hathaway and the Kuwait Investment Authority in the form of convertible preferred securities for $3 billion and $1 billion respectively. Debt financing has been committed by Citi, Merrill Lynch and Morgan Stanley who acted as financial advisors.

Rohm and Haas strengthens Dow's position in a number of industry segments, notably in the electronic materials and coatings segments. Rohm and Haas also has a strong presence in a number of other areas such as water solutions, adhesives, personal care, biocides, and building and packaging materials.