Dow to buy Rohm & Haas
US-based Dow Chemical, the #2 US chemical company, announced it would buy US-based Rohm & Hass in a deal worth $19.7 billion, including assumed debt. It was Dow's biggest acquisition. Rohm & Haas specializes in chemical s used in electronics (such as those used in making computer chips), in adhesives, and in coatings (it is #1 in the chemicals in making acrylic paint).
The move comes as Dow has seen a drop in value thanks to the cost of petroleum used in many of its platstic and styrofoam products. In fact, Dow is selling a 50% interest in its commodity plastics unit to a Kuwait Petrochemical Industries, while Dow concentrates on higher-priced specialty plastics. Like many other companies, Dow is seeking rescue in high-priced products where it has more ability to set prices.
Dow beat out German-based BASF, the world's #1 chemical company and a company with many overlapping products with Rohm & Haas. Some of the Dow cash is coming from loans from Berkshire Hathaway and the Kuwait Investment Authority. It is one of the biggest deals of the year in the US.
10:29:57 PM 
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