FTC Says Dow Agrees To Sell Assets In Rohm Deal
January 23, 2009
The U.S. Federal Trade Commission said Dow Chemical Co had agreed to sell some assets as a condition of its proposed purchase of Rohm & Haas .
Dow would sell a range of businesses to an approved acquirer to preserve competition, including its acrylic monomer, hollow sphere particle, and acrylic latex polymer businesses, the FTC said on Friday.
"Dow and Rohm & Haas are direct and significant competitors in certain markets for acrylics and other industrial chemicals used to make coated paper products, paints, and adhesives," David Wales, acting director of the FTC's Bureau of Competition, said in a statement.
The takeover has been clouded by uncertainty after Kuwait backed out of a $17.4 billion joint venture with Dow, proceeds from which Dow had hoped to use to help fund the deal.
European approval of the deal was announced earlier this month.
The FTC said that without the divestitures the deal would have reduced competition in North American markets for the research, development, manufacture, and sale of certain acrylic monomers -- including glacial acrylic acid, butyl acrylate, and ethyl acrylate -- as well as hollow sphere particles and acrylic latex polymers for traffic paint used to mark lines on streets and highways.
Source: AFX News Limited
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