Lanxess AG said on Sunday it would buy specialty chemical company Chemtura Corp for about $2.12 billion in cash to improve the German company's lubricants and flame retardants business.
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Lanxess, the world's largest synthetic rubber maker, is offering $33.50 in cash for every Chemtura share, representing a premium of about 19 percent to the Philadelphia-based company's close on Friday.
Lanxess will use existing funds and bridge financing to buy Chemtura in a deal with an enterprise value of about 2.4 billion euros ($2.69 billion), it said in a statement.
With this deal, Lanxess will not further pursue its earlier-announced share buyback of around 200 million euros.
(Reporting by Ismail Shakil in Bengaluru; Editing by Sandra Maler)