NEW YORK (AP) — Chemtura's stock is up more than 17 percent in premarket trading after the specialty chemicals company agreed to a $2.5 billion acquisition offer from Germany's Lanxess.
Chemtura shareholders will receive $33.50 per share in cash for each share they own. That's about a 19 percent premium to the Philadelphia company's Friday closing price of $28.18.
The announcement of the transaction late Sunday comes after a yearlong quest to generate shareholder value, Chemtura Chairman and CEO Craig Rogerson said in a written statement.
Lanxess Chairman and CEO Matthias Zachert said that the acquisition diversifies its business by adding Chemtura's urethane, organometallics and additives units.
The boards of both companies approved the deal, which is targeted to close around the middle of next year.
Chemtura Corp. is based in Middlebury, Connecticut.