Lee Eugene Munson and Patrick Kirtz analyze Dow’s Rohm & Haas Acquisition. Published on Seeking Alpha

Facing fierce domestic opposition, the Kuwaiti government this weekend scuttled a deal, first unveiled a year ago, between state-owned Petrochemical Industries and Dow Chemical (DOW) to create K-Dow Petrochemicals. Wall Street reacted on Monday by sending not only DOW down 20%, but expressed a great deal of pessimism about another DOW deal. In July, it announced that it would purchase specialty chemicals producer Rohm & Haas (ROH) for $78 per share. This acquisition is essential to DOW’s long-term strategy as it incorporates a new and diverse product pipeline. ROH itself tumbled more than 16%, sending a clear message to investors: Kuwait has killed the Dow-Rohm merger. A closer look, however, suggests a very different account.
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Tags: acquisition, chemical stock, DOW, Dow Chemical, K-DOW, Kuwait, merger, petrochemical industries, ROH, Rohm & Haas