Dow Acquiring Chemical Maker Rohm and Haas

Midland, MI, July 10, 2008--Dow Chemical Co. will buy chemicals maker Rohm and Haas Co. for more than $15 billion.

The deal for $78 per share includes money from a Kuwaiti sovereign wealth fund and Warren Buffett's Berkshire Hathaway. The price represents a 74 percent premium to Rohm and Haas's closing share price of $44.83.

The deal is valued by Dow at $18.8 billion including debt.

"The addition of Rohm and Haas' portfolio is game-changing for Dow," said Chairman and Chief Executive Andrew Liveris said in a press release.

The acquisition is part of an effort by Dow to move into the specialty chemicals market, which may provide a buffer against ups and downs in basic chemical sales.

"We believe that by becoming a part of Dow, we secure a brighter future and greater growth prospects for our employees," Rohm and Haas Chairman and Chief Executive Raj Gupta said in a press release.

The deal has been approved by both companies' boards. It is pending approval by Rohm and Haas shareholders and regulatory approvals.

The Kuwaiti Investment Authority is helping to fund the deal.

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