Financing for the acquisition includes an equity investment by Berkshire Hathaway and the Kuwait Investment Authority in the form of convertible preferred securities for $3 billion and $1 billion, respectively. Debt financing has been committed by Citi, Merrill Lynch and Morgan Stanley who acted as financial advisors on the transaction.

The acquisition of Rohm and Haas could make Dow the world's leading specialty chemicals and materials company. With annual sales of $54 billion and 46,000 employees worldwide, Dow is a diversified chemical company that sells products into the electronics and other markets. Based in Philadelphia, Rohm and Haas generated annual sales of approximately $8.9 billion in 2007.

Rohm and Haas provides Dow with a strong position in a number of industry segments, most notably in the electronic materials and coatings segments. Rohm and Haas is a major supplier of CMP materials, photoresists and other products.

Under the terms, Dow will establish an advanced materials business unit at Rohm and Haas' current headquarters in Philadelphia. The total revenue of this new unit will approach $13 billion.

Dow will retain Rohm and Haas' corporate name for this advanced materials business unit. Two Rohm and Haas directors will join the Dow board, bringing the total size of Dow's board to 14.

The transaction, which has been unanimously approved by the Boards of Directors of both companies, remains subject to approval by Rohm and Haas shareholders, customary conditions and receipt of regulatory approvals. The companies are targeting completion of the transaction by early 2009.