One blockbuster deal gets announced, and another one collapses. A day before it was due to close, Dow Chemical told Rohm & Hass that it would not follow through on plans.
Rohm & Hass, whose shares are down about 20%, broke the news to its shareholders:
Rohm and Haas Company announced today that it has been advised by The Dow Chemical Company that Dow does not intend to close the pending acquisition of Rohm and Haas on or before Tuesday, January 27, 2009. Rohm and Haas and Dow have received all required approvals for the closing and the merger agreement requires that Dow close by such date.
Rohm and Haas stated that it intends to pursue all available alternatives to protect its shareholders’ interests.
This deal has been on the rocks since December when Kuwait announced plans to cancel a JV with Dow.
Let the litigation begin.