Washington  - Dow Chemical Co has acquired its rvial Rohm & Haas Co for about 15.4 billion dollars in cash in a deal backed by the Kuwait Investment Authority and US billionaire investor Warren Buffet, the company said Thursday.

Dow is paying 78 dollars a share, a 74 per cent premium over Wednesday's closing Rohm & Haas share price. Financing includes Warren Buffet's Berkshire Hathaway with 3 billion dollars and the Kuwait Investment Authority with 1 billion dollars, the Michigan- based Dow said.

Buffet's Berkshire will become Dow's largest shareholder.

Dow is seeking relief from soaring oil prices after raising prices more than 20 per cent, and is still facing a "margin squeeze," Chief Executive Officer Andrew Liveris told Bloomberg financial news service. (dpa)