Chemical giants agree purchase deal
10/07/2008
Dow Chemical will buy its leather chemicals rival Rohm and Haas in a deal worth more than $18 billion.
The boards of the two companies approved the purchase on July 10; Rohm and Haas shareholders and the regulatory authorities have still to give their approval.
Reports suggest Dow Chemical has raised part of the capital to fund this deal from investor Warren Buffet and from a Kuwaiti sovereign wealth fund.
Dow’s chairman and chief executive, Andrew Liveris, described the development as “a game-changing move for Dow”. He explained that his company believes the acquisition of Rohm and Haas can help it make a bigger impact on the specialty chemical sector.
For Rohm and Haas's part, chief executive, Raj Gupta, said: “We believe that by becoming a part of Dow, we secure a brighter future and greater growth prospects for our employees.”
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