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Dow will not buy Rohm & Haas by deadline

January 26, 2009
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Dow Chemical Co. announced it will not close on its $15.4 billion acquisition of specialty chemicals maker Rohm & Haas Co. by the deadline due to the economic malaise and recent collapse of a joint venture. The Federal Trade Commission signed off on the deal last week, setting in motion a two-business day timetable for the close. The European Union had blessed the deal earlier this month. Rohm & Haas has said both parties must agree to an extension of the deadline. The Philadelphia-based company said it "intends to pursue all available alternatives to protect its shareholders'' interests," but did not indicate if it had agreed to an extension. Midland, Mich.-based Dow said recent developments have created "unacceptable uncertainties on the funding and economics of the combined enterprise." Since the deal did not close by Jan. 10, Dow is paying a "ticking fee" of about $3 million per day.

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