Rohm & Haas, Dow Merger OK'd but Likely Delayed

Philadelphia, PA, Jan. 26, 2009--Rohm and Haas Co. said Dow Chemical Co. doesn’t intend to close its $15.4 billion acquisition by tomorrow as required by their merger agreement. Rohm & Haas shares tumbled in New York trading.

The U.S. Federal Trade commission approved Dow Chemical’s Rohm and Haas transaction on Jan. 23 and the European Commission, the European Union’s antitrust regulator, cleared the merger on Jan. 8. The merger was to close two business days after all approvals are received, Rohm & Haas has said.

Rohm and Haas “intends to pursue all available alternatives to protect its shareholders’ interests,” the Philadelphia-based company said today in a statement. The merger agreement requires that Midland, Michigan-based Dow Chemical close by Jan. 27 now that all required regulatory approvals have been received, Rohm & Haas said.

Dow Chemical Chief Executive Officer Andrew Liveris must complete the transaction without $9 billion that was to come from a plastics joint venture with Kuwait, which canceled the deal last month. Liveris has said he still can fund the buyout with $13 billion in loans and $4 billion of equity investments.