Lanxess AG said it has agreed to buy U.S. rival company Chemtura Corp. for around $2.12 billion in cash. The acquisition, which will increase the size of Lanxess’ additive business by twofold, will also accelerate its shift towards specialty chemicals.
Lanxess has offered $33.50 per share, a price that is 19% higher than Chemtura’s close at $28.18 on Friday. According to analysts, buying Chemtura is Lanxess’ biggest acquisition so far and is in line with the German firm’s aim to expand its chemical units. The deal, currently pending approvals from regulators and Chemtura shareholders, is expected to close around mid-2017.
The Germany-based firm’s shares gained as much as 5.4% to 51.31 euros in Frankfurt trading, adding to the 17% the stock has gained this year, bringing its market value up to $5.2 billion. Cumulatively, Chemtura shares gained 3.3% this year through September 23.
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