Dow Chemical Agrees to Buy Rohm & Haas
March 9, 2009 by Stephen Kersey
Filed under Business
Dow Chemical Co. agreed on Monday to go through with the purchase of Rohm and Haas Co. The two companies had been set to go to trial over Dow’s refusal to make the deal that they had agreed to many months ago.
Rohm & Haas shareholders will receive $78 per share plus a small ticking fee agreed upon in their original deal. Last summer Dow had agreed to buy Rohm but then balked at closing the takeover after their plastics joint venture ($17.4 billion) fell apart. In January, Rohm sued Dow for not proceeding.
Logo: Courtesy of Dow
Under the terms of the transaction, the two biggest shareholders (Haas Family Trusts and Paulson & Co.) will take $2.5 billion of the money owed to them in preferred equity. Additionally, another $500 million will be paid to Haas trusts.
Source: Wire Reports
