With two major deals pending, specialty chemicals business, which supplies additives, coatings, adhesives for packaging, experiences big changes. In first deal, Dow Chemical Co., Midland, MI; acquires Rohm and Haas, Philadelphia, PA, for $78/share in cash, or roughly $19 billion.

Plans call for Dow to shift some of its specialty chemicals business to Rohm and Haas and for it to retain its name as well as its Philadelphia headquarters. As part of Dow, Rohm and Haas also becomes more vertically integrated.

In second deal, Ashland Inc., Covington, KY, expands its capabilities in packaging coatings, adhesives, with acquisition of Hercules Inc., Wilmington, DE. Ashland plans to pay $3.3 billion in cash, stock, assume $0.7 billion in debt.

Hercules brings expertise in aqueous formulations, as well as products used in pulp, papermaking. After closing, which is expected by end of 2008, combined company anticipates $10 billion in annual revenue.

Ashland plans to maintain significant presence in Wilmington. Respective closings depend on approval of Hercules’, Rohm and Haas' shareholders, regulatory approvals.