PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Register Now for D+D 2014

Paint and Coatings Industry News

Main News Page


Dow, Rohm & Haas Reach Deal (Update)

Wednesday, March 11, 2009

Comment | More

Dow Chemical Co. has reached a tentative deal to complete its disputed $15 billion buyout of Rohm & Haas. The combined company will shed more jobs than originally planned and freeze salaries this year. The deal went forward at the original purchase price of $15.3 billion in cash, or $78 a share, after Rohm’s two largest shareholders agreed to put up $3 billion to help close it.

The agreement was a big win for Rohm & Haas shareholders, who get a rich price for their stock, and gives beleaguered Dow Chemical some breathing room.

The merger must close on April 1, according to the settlement approved Monday by Delaware Judge William B. Chandler III. The agreement also settles the lawsuit Rohm & Haas filed in late January, seeking to force Dow Chemical to honor its disastrously timed July merger agreement.

Dow had eagerly wooed Rohm & Haas because it wanted the company's highly profitable specialty chemical products, such as paint additives. Rohm & Haas came on the market when the Haas family decided to diversify the assets in its family and charitable trusts. Dow is based in Georgetown, Del.; Rohm & Haas is based in Philadelphia.

Dow first announced the deal last summer, but the recessionary economy has severely hurt its business since then. Late last year, a Kuwaiti company pulled out of a joint venture from which Dow expected more on than $7 billion in cash. The company also cut its dividend for the first time to preserve cash.

The breakthrough in the dispute came with a cash infusion from the Haas trusts in Philadelphia and hedge-fund operator John Paulson. Warren Buffett's Berkshire Hathaway previously announced it would invest $3 billion to help Dow complete the deal; the Kuwait Investment Authority will put up $1 billion.

After Monday’s proceedings, Dow announced that it would cut 3,500 new jobs on top of the 6,000 combined job cuts previously announced. Dow chief executive Andrew Liveris also said Dow was reconsidering its pledge to keep Rohm & Haas intact in Philadelphia as Dow's specialty chemicals divisional headquarters.

Rohm & Haas employs 15,500 people, 3,000 in the Philadelphia area

"The next three weeks will have to drive how we put this together," Liveris said.

Dow shares fell 78 cents, or 11 percent, to $6.33, on news of the agreement; shares of Rohm & Haas rose $10.20, or 16 percent, to $74.

Sources: philly.com, Associated Press

   

Tagged categories: Acquisitions; Dow Chemical Company; Rohm and Haas

Comment Join the Conversation:

Sign in to our community to add your comments.

JPCL Europe
Special EMEA edition!

Now, the publisher of JPCL offers essential news and knowledge for protective and marine coatings professionals in Europe, the Middle East and Africa: www.jpcleurope.com


NLB Corporation
VacLance cleans up as you work

Add vacuum recovery to any NLB rotating water jet lance with a VacLance attachment and vacuum source. Model DM32283 works vertically, horizontally and in corners.


Corrosion Probe, Inc.
From Detection to Correction

Corrosion Probe, Inc. has the Most Concrete Coatings Experience and Expertise. Contact us today at
860-767-4402, www.cpiengineering.com


ITW Binks
Built for Tough Jobs

From Epoxies to Urethanes to other high solid coatings, the new Binks Airless 75 delivers a great finish using an ergonomic design. Visit binks.com for more information.


Denso North America Inc.
Denso Tank Base
Protection System

An easily applied prevention system, utilizing Denso tapes and coatings around the tank base, that helps prevent corrosion from external elements.
Call 1-281-821-3355 or Visit www.densona.com


CHLOR*RID International Inc.
Surface cleanliness is
ESSENTIAL to coating
performance.

* TEST FOR SALTS
* PREVENT FLASH RUST
* REMOVE SALTS
More information at
www.chlor-rid.com,

800-422-3217


Van Air Systems
Need a Dry-O-Lite Refill?

Order Dry-O-Lite desiccant from Van Air Systems.
The dependable, and cost-effective solution for dry compressed air.

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker JPCL Europe

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com