KS-BUYS-MORTON-UPDATE
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K+S of Germany agreed Thursday to buy Morton Salt from Dow Chemical Co. for $1.68 billion to become the world’s biggest salt producer and reduce its dependence on potash fertilizer.
The announcement came just one day after Dow closed its $16.5-billion purchase of chemical maker Rohm & Haas Co., owner of Morton Salt.
Morton, founded in 1848, is North America’s largest salt producer with 2008 sales of $1.2 billion. A spokesman for Dow, based in Midland, Mich., said the all-cash transaction was expected to close midyear.
The purchase doubles the percentage of sales that K+S gets from salt to about 26% of its total and cushions it from swings in potash demand.
Dow shares jumped $1.13, or 13%, to $9.94.
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