Dows Bid For Rohm And Haas Case Solution

Dows Bid for Rohm and Haas Case Solution

Dows Bid for Rohm and Haas Case Solution

This case reviews Dow Chemical Company's proposed procurement of Rohm and Haas in 2008. The $18.8 billion securing was a piece of Dow's key change from a moderate development, low-edge, and repeating maker of essential chemicals into a higher-development, higher-edge, and more steady maker of execution chemicals. At the same time, Dow had consented to a joint wander arrangement with Petrochemical Industries Company (PIC) of Kuwait, an arrangement that would produce $7 billion in real money that could be utilized to back the all-money offer to purchase Rohm and Haas. Dow and Rohm reported the Rohm merger on July 10, 2008, just before the money related emergency in September 2008. The concentration of the case is on what occurred after the money related emergency transformed into a worldwide financial emergency. Dow, similar to every compound maker, endured as the worldwide economy fell into retreat amid the second 50% of 2008, and as budgetary markets solidified. To exacerbate matters, PIC wiped out the joint wander with Dow in December 2008. Thus, Dow was harmed on three fronts: in the first place, it lost an essential subsidizing hotspot for the proposed obtaining; second, Dow's monetary condition and interior income weakened significantly (its stock cost was down over 70% amid 2008); and third, Rohm's conjecture deals, profit, and esteem declined sharply in this manner lessening its engaging quality as a procurement target. Given this conversion of occasions, Dow sued to cross out the merger concurrence with Rohm in January 2009. Rohm reacted with its own particular claim to drive culmination of the arrangement. As of February 2009, Dow's directorate and its CEO Andrew Liveris need to choose what to do above all else about the Rohm obtaining and the pending claims, additionally about the company's declining monetary execution and the PIC joint wander.

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