Company News

Dow Chemical’s planned acquisition on hold
Unable to meet the 27 January deadline for its planned acquisition of Rohm and Haas, Dow Chemical has put it on hold “based on several macro-economic factors such as the continued crisis in global financial and credit markets combined with the dramatic and stunning failure of Petrochemicals Industries Company of Kuwait (PIC) to fulfill its obligation to complete the formation of the K-Dow joint venture in December 2008.”

Meanwhile, Rohm and Haas filed a lawsuit on 27 January asking Dow to complete the US$15.4 billion deal. Dow Chairman Andrew Liveris had said in the press release that the company’s long-term strategy remained unchanged and that the acquisition was consistent with its strategy. But with PIC having pulled out of the K-Dow deal, the American company has been left short of the funds required for its acquisition of Rohm and Haas.

Dow is seeking to recoup the US$2.5 billion break-up fee from PIC and is sourcing for a new partner to go ahead with its K-Dow joint venture.