Chemtura To Be Acquired By LANXESS In $2.5 Bln Deal

(RTTNews) - Chemtura Corp. (CHMT) said that it has entered into a definitive agreement pursuant to which LANXESS AG (LNXSF.PK), a global specialty chemicals company, will acquire Chemtura in a transaction valued at about $2.5 billion.

As per the terms of the agreement, Chemtura shareholders will receive $33.50 per share in cash for each outstanding share of common stock held, which represents an 18.9% premium to the stock's closing share price of $28.18 on September 23, 2016. The respective boards of both companies have unanimously approved the transaction.

LANXESS will fund the transaction through existing liquidity and the issuance of new debt. The transaction is expected to close around mid-2017, subject to approval by the holders of Chemtura's common stock, customary closing conditions and regulatory approvals.