Rohm and Haas still hopeful of Dow takeover
It was announced in July 2008 that Dow Chemical would buy its leather chemicals rival Rohm and Haas in a deal worth more than $18 billion. However, although the boards of the two companies approved the purchase on July 10, the takeover has not yet taken place.
As a result, Rohm and Haas has issued the following statement: “We understand that this is a difficult environment for the chemical industry. However, the difficult conditions in the chemical industry and financial markets commenced before Dow agreed to acquire Rohm and Haas and were widely expected to worsen at the time we entered into the transaction.
”Therefore, we insisted in our merger agreement that Dow assume both of these risks, rather than the Rohm and Haas shareholders. Dow should honour its obligations and close the transaction.
”There are multiple steps Dow can, and should, immediately take to reduce its dependence on the bridge loan and secure the financial strength of the merged company. We are convinced that Dow has the ability to close the deal and succeed.”
