The Dow Chemical Company confirms it has informed Rohm and Haas that the company will not close the proposed acquisition on or before Jan. 27.

According to Dow Chemical, it has determined that recent material developments have created unacceptable uncertainties on the funding and economics of the combined enterprise. This assessment is based on several "macro-economic factors" such as the continued crisis in global financial and credit markets combined with the failure of Petrochemicals Industries Company of Kuwait (PIC) to fulfill its obligation to complete the formation of a joint venture in late December 2008, says the company.

"Our long term strategy remains unchanged and the proposed acquisition of Rohm and Haas is consistent with this strategy," said Andrew N. Liveris, chairman and chief executive officer of Dow Chemical.

"Dow Chemical has a long history of resiliency in responding to changing market conditions, and that resiliency continues," added Mr. Liveris, "but the world has changed significantly and we still do not see the bottom of this unprecedented demand destruction which only accelerated through the fourth quarter and brought December operating rates to historic lows."