Cash-strapped Dow Chemical gets EC regulator's nod for Rohm and Haas acquisition

The European Commission has cleared the anti-trust hurdle for Dow Chemical Company's proposed acquisition of Rohm and Haas Co as the commission found it compatible with the European common market.

Dow Chemical, however, does not seem to be interested in the $18-billion Rohm & Haas acquisition, sources close to the developments said.

With the EC approval, Dow and Rohm only need clearance from the US Federal Trade Commission to close the deal. Analysts expect the FTC also won't stand in the way either.

Dow has only till 10 January to close the deal. If the merger is delayed, Dow will be forced to pay a "ticking fee" of $100 million per month to compensate Rohm shareholders.

Dow may not be able to fund the acquisition as it may find it difficult to raise money after a Kuwaiti government's last-minute decision to back out of a joint venture with the company's plastics' unit in West Asia.

Dow had hoped to raise a minimum of $7 billion from that joint venture to pay for the Rohm deal.