Midland, Michigan - The Dow Chemical Co. has completed its acquisition of speciality materials company Rohm and Haas, the company said 1 April.
The new wholly owned $14 000 million Dow subsidiary will be called Dow's Advanced Materials Division. Dow said it aims to achieve $3000 million in additional value growth opportunities, as well as annual cost synergies of $1300 million.
"The closing of this transaction strongly positions Dow for the future by transforming our business portfolio," said Dow chairman and ceo, Andrew Liveris.
Pierre Brondeau has been named president and ceo of the division, which includes: coatings, building and construction, specialty materials, adhesives and functional polymers, and electronic materials, the company said.
Dow has already received regulatory approval from the European Commission and said it has "initiated procedures" to comply with the US Federal Trade Commission's consent order. The company also said it has decided exercise its option to have the Haas Family Trusts make an additional $500 million investment in Dow equity. This is consistent with Dow's disciplined plan to retire the bridge loan for the financing of the Rohm and Haas transaction by the end of 2009, Dow added.
Dow has a major polyurethanes raw materials and systems business and Rohm and Haas also has polyurethanes in its adhesives and coatings unit. (RD)