Dow's Kuwait Deal Falls Through
December 30, 2008
MIDLAND, MI/PHILADELPHIA - The Kuwait Supreme Petroleum Council (SPC) has reversed its prior approval of the agreement between The Dow Chemical Co. (Dow) and Petrochemicals Industries Co. (PIC) to enter into K-Dow Petrochemicals, a planned 50-50 joint venture company. The deal was worth an estimated $17.4 billion and was part of Dow’s strategy to increase its exposure in the specialty chemicals business.
In response to the Kuwait announcement, Rohm and Haas Co. reiterated that the completion of the K-Dow Petrochemicals partnership between Dow and PIC is not a closing condition for the proposed merger between Rohm and Haas Co. and Dow.
Rohm and Haas and Dow entered into a definitive agreement on July 10, 2008, providing for the acquisition of Rohm and Haas by Dow, subject to the terms of that agreement. Rohm and Haas Co. shareholders approved the agreement on Oct. 29, 2008.
Rohm and Haas announced that it continues to work diligently towards completing the proposed transaction with Dow in early 2009.