DOW JONES NEWSWIRES
The Federal Trade Commission denied Dow Chemical Co.'s (DOW)
request to modify a 2009 settlement that was reached to resolve
competitive concerns related to the chemical company's $16 billion
acquisition of Rohm & Haas Co.
Shares were down 2.7% at $34.63 in recent trading but are still
up 1.5% so far this year.
Dow acquired the specialty-chemicals business in a bid to
transform itself away from the highly cyclical commodities
chemicals business toward higher-margin specialty products.
The largest U.S. chemical producer had been required to sell a
California location that includes a latex polymers plant. However,
the FTC said that Dow's application indicated that the FTC-approved
buyer, French specialty-chemicals company Arkema SA (ARKEMA,
AKE.FR), only agreed to a long-term lease of the plant with an
option to buy a portion of the property where it is located.
Dow's efforts to sell the whole site have been unsuccessful and
the company had asked the FTC to eliminate the obligation to sell
the entire site or to grant a three-year extension. Dow's
application also said it had failed to obtain required approvals to
subdivide the site to sell a portion to Arkema.
In denying the request, the FTC said competitive risks remain if
Dow retains control of the facility and the company failed to show
that modifying the settlement would be in the public interest,
among other things.
A company spokesperson wasn't immediately available to
comment.
Dow in April reported that its first-quarter earnings climbed
34% as it continued to benefit from a broad manufacturing
rebound.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com
