MIDLAND, MI –
In a deal that went down to the wire, Dow Chemical Co.
will purchase Rohm & Haas
for just over $15 billion. The two companies reached the agreement on the day they were scheduled to go to court over the delayed merger.
Rohm’s two biggest shareholders, the Haas family trust and Paulson & Co., chipped in $3 billion to help close the deal that must be final by April 1.
Dow is looking to cut costs an additional $400 million more than previously estimated. It is also reconsidering its initial promise to keep Rohm & Haas intact in Philadelphia, according to Andrew Liveris, CEO. There are plans to sell Rohm’s Morton salt division and to cut a total of 3,500 jobs from the combined corporate entity.