4.10 Ashland Chemical, the largest US chemical distributor, acquired chemical manufacturer Hercules Inc. for $3.3 billion. This

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4.10 Ashland Chemical, the largest US chemical distributor, acquired chemical manufacturer Hercules Inc. for

$3.3 billion. This move followed Dow Chemical Company’s purchase of Rohm & Haas. The justification for both acquisitions was to diversify earnings and offset higher oil costs. How will this business combination offset escalating oil costs?

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