Dow Chemical bowed to the financial and economic crisis on Thursday and cut its dividend for the first time in its 97-year history, in a effort to save about $1bn that could be used for its $15.4bn takeover of Rohm and Haas.

The US chemical group’s decision to slash its ­quarterly payout by 64 per cent to 15 cents a share comes two months after Andrew Liveris, the chief executive, had pledged not to halt Dow’s run of 389 quarters without a dividend cut.