The deal is set to have an enterprise value of $2.69 billion (2.4 billion euros). Lanxess AG is the world’s largest synthetic rubber manufacturer.
Lanxess AG has stated that it would acquire Chemtura Corp, a specialty chemical company for around $2.12 billion in order to boost its additives business.
Lanxess has offered $33.50 for every Chemtura’s share, which represents a premium of nearly 19%, based on the Philadelphia-based company’s closing value as of last Friday.
A statement released by Lanxess states that it will use a combination of existing funds and a new debt for this acquisition. The world’s largest synthetic rubber’s purchase of Chemtura will mark the deal at $2.69 billion (2.4 billion euros).
In a separate statement Chemtura had stated that the boards of both companies have unanimously approved the merger, which is scheduled to close mid-2017.
Significantly, Lanxess has reported that its earlier stated plan on buying back its shares for around 200 million euros is cancelled.
Chemtura’s lead advisor for this deal was Morgan Stanley.
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