Lanxess’s offer of $33.50 for each Chemtura share, represents a premium of about 19 percent to the Philadelphia-based company’s close on Friday.
The world’s largest synthetic rubber maker will use existing funds and new debt to buy Chemtura in a deal with an enterprise value of about 2.4 billion euros ($2.69 billion), Lanxess said in a statement.
The boards of both companies have unanimously approved the deal, which is expected to close around mid-2017, Chemtura said in a separate statement.
Lanxess also said it will no longer pursue its earlier-announced share buyback of around 200 million euros.
Morgan Stanley advised Chemtura on the deal.
(Reporting by Ismail Shakil in Bengaluru; Editing by Sandra Maler and Sunil Nair)