Dow acquisition cleared by Federal Trade Commission

Friday, January 23, 2009

MIDLAND, MI — The U.S. Federal Trade Commission has given Dow Chemical clearance to follow through with their $15.4 billion acquisition of Rohm & Haas, according to Bloomberg.com.

Dow agreed to sell acrylic plants in Texas, Louisiana, Illinois and California and a latex research facility in North Carolina to satisfy FTC concerns that the merger could eventually lend itself to form a monopoly and hurt chemical manufacturer competition, the story stated.

According to a Federal Trade Commission statement, Dow will have six months after it completes the acquisition to sell the assets or a trustee appointed by the FTC would be empowered to dispose of them.

After clearing this final hurdle in the long-awaited merger, Dow must now complete the deal within two business days, the story noted.