MIDLAND, Mich. (April 7, 2009)—The Dow Chemical Co. said it has completed its acquisition of specialty materials company Rohm and Haas.
The new wholly owned $14 billion Dow subsidiary will be called Dow's Advanced Materials Division. Dow said it aims to achieve $3 billion in additional value growth opportunities, as well as annual cost synergies of $1.3 billion.
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 U.S. 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.