FTC Clears Dow's Morton Sale To Germany's K+S

   DOW JONES NEWSWIRES 
 

The Federal Trade Commission has cleared Dow Chemical Co.'s (DOW) $1.68 billion sale of its Morton Salt business to K+S AG (SDF.XE), proceeds of which will pay off a loan used to fund Dow's purchase of Rohm & Haas.

Financing concerns nearly killed the Rohm deal early this year as Dow struggled to fund the $16.3 billion price tag thanks to the financial crisis crimping lending. Dow was able to get a $9.2 billion loan, and the company vowed to pay it off by year's end through asset sales and capital-raising efforts, among other steps.

Dow and K+S expect to close the Morton sale in the next several days. Dow acquired the business through the Rohm purchase.

K+S had to sell a small amount of the Morton assets as part of the FTC agreeing to clear the deal. The German company will become the world's largest salt producer once the purchase is finished. It is also among the world leaders in fertilizer.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; [e-mail]