This case examines Dow Chemical Company's proposed acquisition of Rohm and Haas in 2008. Simultaneously, Dow had signed a joint venture arrangement with Petrochemical Industries Company (PIC) of Kuwait, a deal that will create $7 billion in cash that might be utilized to finance the all-cash offer to purchase Rohm and Haas. Dow and Rohm declared the Rohm merger on July 10, 2008, just before the financial crisis in September 2008.
The focus of the case is on what occurred after the financial crisis turned into a worldwide economic crisis. Dow, like all chemical manufacturers, suffered as financial markets suspended, and as the worldwide market fell into recession during the second half of 2008. PIC abrogated the joint association with Dow in December of 2008, to make matters worse. Rohm reacted with its own suit to compel consummation of the deal. As of February 2009, the board of directors and its CEO Andrew Liveris of Dow have to determine what to do about the Rohm acquisition as well as the pending litigations, but in addition about the declining financial performance of the company as well as the PIC joint venture.
PUBLICATION DATE: November 16, 2010 PRODUCT #: 211020-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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