PaintSquare.com


The First Word in Protective & Marine Coatings

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

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.

Safway Services
Suspended Access Made Easy With QuikDeck™

The smart choice for suspended access, QuikDeck’s interchangeable, lightweight components make them easy to set up and reassemble when you need to move.


Simpson Strong-Tie
Repair, Protect & Strengthen

Need a coating? Turn to Fox. We have solutions to repair, protect and strengthen concrete, steel and wood substrates. Call 888-760-0369 or email info@foxind.com


Denso North America Inc.
Denso SeaShield
Marine Systems

A full range of steel, concrete and timber pile rehabilitation systems including petrolatum systems, fiberglass jackets, epoxy grouts and many other product lines.
Call 1-281-821-3355 or Visit densona.com


Polyval Coatings
POLYFLEX brand Polyurea

high chemical resistant membranes are used extensively to protect our environment in secondary containment applications.


LS Industries
LS Blasters: Optimum Steel Cleaning Efficiency

Simplify surface prep with the precise shot control of LS Blasters. Our blast technology delivers optimum coverage and finish. 800-533-8008


Elcometer, Inc.
New Elcometer 456 Coating Thickness Gauge

Best In Class Just Got Better. Technologically Intelligent And Robust. Marvelous Design And Durability. An Earth-Shattering Revolution In Coating Inspection.


Barton International
Garnet Abrasives result in Shorter Blast Times

Get your customers back on line fast with Barton engineered garnet abrasives. 2 to 4 times harder and up to 2 times heavier than ordinary abrasives. Call 800-741-7756 or Email info@barton.com

 
 
 
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