Lanxess's offer
of $33.50 for each Chemtura share, represents a premium of about
19 percent to the Philadelphia-based company's close on Friday.
The world's largest synthetic rubber maker will use existing
funds and new debt to buy Chemtura in a deal with an enterprise
value of about 2.4 billion euros ($2.69 billion), Lanxess said
in a statement.
The boards of both companies have unanimously approved the deal,
which is expected to close around mid-2017, Chemtura said in a
separate statement.
Lanxess also said it will no longer pursue its earlier-announced
share buyback of around 200 million euros.
Morgan Stanley advised Chemtura on the deal.
(Reporting by Ismail Shakil in Bengaluru; Editing by Sandra
Maler and Sunil Nair)
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