Dow-Rohm merger could mean sale of Morton Salt
Morton Salt may go on the block if the Dow Chemical acquisition of Rohm and Haas (Morton's parent) is consumated , explains BNET Food reporter Luisa Beltran. "Morton has emerged as a cash cow," she explains.
"Morton Salt may be one of the few hoping that Dow Chemical fails to close its $18 billion takeover of Philadelphia chemical company Rohm and Haas. Rohm and Dow are set to meet in court next month, where the former will try to force the latter to close the deal at $78 a share.
"The merger poses risks for Morton, which is best known for providing household salt. The unit could get dismantled if the Dow-Rohm deal gets done — or, perhaps more likely, sold outright. ...
"Rob Felice, a Gabelli & Co. analyst, doesn’t believe Morton will get dismantled if the Dow-Rohm transaction is completed. But job cuts and a restructuring will likely result. “It doesn’t make much sense that Dow would destroy value or look to cut into a business that’s the bright spot in Rohm and Haas’s portfolio,” he told me.
"The most likely outcome is a sale."
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