Dow Closes $16.5 Billion Buyout of Rohm & Haas

Midland, MI, April 2, 2009--Dow Chemical Co. said Wednesday it has closed on its $16.5 billion buyout of Rohm & Haas Co.

Rohm & Haas will form the core of a new advanced materials unit that is expected to have $14 billion in annual sales, Dow said.

The Rohm & Haas brand will disappear.

"The closing of this transaction strongly positions Dow for the future by transforming our business portfolio," Dow Chairman, Chief Executive and President Andrew Liveris said in a statement.

Meanwhile, Standard & Poor's Ratings Services cut its corporate credit and senior unsecured debt rating on Dow to "BBB-" from "BBB."

Dow expects the Rohm & Haas deal to result in cost savings of about $1.3 billion.