COLOGNE, Germany - The specialty chemicals company LANXESS announced plans to acquire U.S.-based Chemtura Corp., a provider of flame retardant and lubricant additives, in a deal valued at approximately $2.7 billion. With the largest acquisition in its history, LANXESS is building on its own additives portfolio and will become one of the world’s major actors in this growing market.
The companies have signed a definitive acquisition agreement. Under the terms of the agreement, Chemtura shareholders will receive $33.50 per share in cash for each outstanding share of common stock held. The transaction will be financed by LANXESS mainly through senior and hybrid bonds, as well as from existing liquidity. The transaction, which is expected to close around mid-2017, is subject to approval by Chemtura shareholders, required regulatory approvals and certain other customary closing conditions.