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Little Fish Left in a Big Pond

Posted August 02, 2008 8:00 AM

When a giant bows out of the competition, does that give more playing field to the little guys? With Dow Chemical buying acrylic paint producer Rohm & Haas for more than $18 billion, it's not a definite sign the company is shutting its doors on plastics. However, it does signal the company's low tolerance for oil-dependent market fluctuations and its intentions to move away from the plastics playing field.

Will such exits and mergers of plastics giants make room for the smaller plastics manufacturers and producers to thrive?

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Guru

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#1

Re: Little Fish Left in a Big Pond

08/03/2008 11:30 AM

Sorry I did not know buying one business by a larger business sent any signals other than the large business has money to spend or is will to take on a risk. A lot of business buy out other business for many reasons.

What plastic patents does dow have? Are they running out? Are they part of the type of plastic that scares people with the horomone problems it causes in humans?

It only reads to me like Dow needed and outside Income stream to offset losses from its other units because of the rise in oil prices.

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#2
In reply to #1

Re: Little Fish Left in a Big Pond

08/03/2008 9:32 PM

So true dadw5boys,

If they had left the market Dow would be selling the pieces, more likely Dow's book keeping etc. will take over but it will be business as usual with the added " a Dow subsidiary" to the name.

Brad

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#3

Re: Little Fish Left in a Big Pond

08/05/2008 3:51 PM

Dow buys all kinds of businesses. It hasn't meant yet that they are getting out of any particular sector, it usually indicates they are just diversifying a little. The price of feedstocks will mean more to the "little fish" even if they do stop producing plastics (yeah, as IF!).

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Anonymous Poster
#4
In reply to #3

Re: Little Fish Left in a Big Pond

08/14/2008 12:54 AM

The pool is already too full of sharks and their pups for little fish to survive in. Even finding a niche market does not pay if it is profitable for the small guy. The sharks start circling as soon as they smell profit and snap up the little fish before he can get bigger. Little fish are in danger of becoming extinct as they are only bate for the sharks nothing more. Dow is just regurgitating a bit of tough bate and will gobble it up again on the next pass.

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