Dow Chemical (Midland, Michigan / USA; www.dow.com) is to acquire the Wolff Walsrode cellulose products business of Bayer (Leverkusen / Germany; www.bayer.com). The transaction is expected to close in the first half of 2007, subject to regulatory approval. Financial terms have not been disclosed. Dow said the acquisition underlines its commitment to strengthen its performance businesses portfolio as part of the goal to dampen earnings cyclicality while driving growth.

Bayer announced in March 2006 that it would divest its subsidiaries H.C. Starck and Wolff Walsrode. H.C. Starck was recently acquired by private equity groups Advent International and Carlyle. Bayer chairman Werner Wenning said this most recent sale "offers promising perspectives for the future of Wolff Walsrode. As planned, the proceeds will help to finance the acquisition of Schering."

Wolff Walsrode, with 2005 revenues of 329m, will become an integral part of Dow´s Water Soluble Polymers business, combining Wolff´s HEMC (hydroxyethyl methyl cellulose) technology and CMC (carboxymethyl cellulose) chemistry with Dow´s HPMC (hydroxypropyl methyl cellulose) product brands. Cellulose derivatives produced by the combined businesses are used across a broad range of industry sectors, including construction materials, personal care, pharmaceuticals, food and a number of specialty applications.