US-based specialty chemicals manufacturer Rohm and Haas has filed a suit against Dow Chemical, a day after the US chemicals giant announced it would not be able to meet the deadline to complete proposed acquisition.

Rohm and Haas has asked the Court of Chancery of the State of Delaware to order Dow to comply with the merger agreement requiring it to close the transaction within two business days of receiving all regulatory approvals. According to Rohm and Haas, the last of the required regulatory approvals to close the deal was received from the U.S. Federal Trade Commission on Friday, January 23, 2009.

The Dow Chemical Company said on January 27 that "recent material developments have created unacceptable uncertainties on the funding and economics of the combined enterprise". In particular, Dow blamed its would-be partner in Kuwait, the Petrochemicals Industries Company of Kuwait, who failed “ to fulfill its obligation to complete the formation of the K-Dow joint venture in late December 2008”. Dow Chemical also said that “the continued crisis in global financial and credit markets” hindered the company’s ability to raise the necessary funds.

However, Andrew N. Liveris, Dow’s Chairman and CEO stated that the company “remains interested in discussions to find a solution to complete the acquisition of Rohm and Haas.

The trial requested by Rohm & Hass is scheduled to begin on March, 9, in Delaware and is expected to be completed within a week.