Dow Chemical, Rohm & Haas Hit Hard

Shares of both companies drop after Kuwait's government calls off a $17.4 billion joint venture with Dow.
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Updated from 2:09 p.m. EST

Shares of

Dow Chemical

(DOW) - Get Report

slumped Monday after Kuwait's government called off a $17.4 billion joint venture with the Michigan-based petrochemicals company.

Dow closed down 19% at $15.32, a new 52-week low.

Investors in

Rohm & Haas

(ROH)

were also concerned, sending the company's shares down 16%. Dow set plans in July to acquire

Rohm & Haas

in a nearly $19 billion deal. For its part, Rohm & Haas said the successful completion of Dow's joint venture in Kuwait was not required to close the merger of the two.

Shareholders of Rohm & Haas approved the agreement in October. Rohm & Haas said it "continues to work diligently" toward completing the transaction with Dow in early 2009.

Following the news, Dow was downgraded from overweight to equal-weight at Barclays Capital.

This article was written by a staff member of TheStreet.com.