A majority of the more than 195 million shares entitled to vote came out in favor of the merger proposal between Rohm and Haas Co. (Philadelphia, PA) and The Dow Chemical Co. (Midland, MI). Per the agreement’s terms, stockholders will receive $78 in cash for each Rohm and Haas share. Pending regulatory approvals, the merger is now expected to close in early 2009, with Rohm and Haas retaining its name and Philadelphia headquarters. Dow adds specialty chemicals business segments to Rohm and Haas’s portfolio, with the joined company projecting annual revenue of approximately $13 billion.
In its Oct. 23 third-quarter earnings announcement, Andrew N. Liveris, Dow’s chairman and CEO, said the company is expecting a global recession through most of 2009, but feels its petrochemicals joint venture with PIC of Kuwait and the acquisition of Rohm and Haas will help it through the difficult market. Company-wide, Dow reported a 13% increase in sales for the quarter, which totaled $15.4 billion. Net income was $428 million, including $18 million in fees for the Rohm and Haas acquisition. Performance Plastic’s sales increased 10% over last year to $4.3 billion, while Basic Plastics saw sales rise 7% to $3.5 billion.