Germany-based specialty chemicals group Lanxess has taken a significant step forward in its planned acquisition of the US chemical company Chemtura.
Chemtura’s shareholders approved the merger at a special meeting in Philadelphia, US where 99.8% of the votes cast were in favor of the merger, representing 81.77% of Chemtura’s outstanding common stock. Under the terms of the merger agreement, Chemtura shareholders will receive US$33.50 for each outstanding share in cash at closing of the transaction.
Matthias Zachert, Chairman of the Board of Management of Lanxess AG, welcomed the vote approving the merger taken at the shareholders’ meeting. “We are pleased that Chemtura’s shareholders are so supportive of the planned acquisition. Their approval is an important milestone on Lanxess’s route to becoming one of the major players in the field of additives chemistry.”
Clearance for the acquisition from the US antitrust authorities was already received at the end of December 2016. Lanxess expects to close the transaction in mid-2017 after all remaining regulatory approvals have been received.
Flame retardant and lubricant additives are the main pillars of Chemtura’s business and would complement the current Lanxess portfolio. After closing of the transaction, these two business activities are to be integrated with Lanxess’s Rhein Chemie Additives business unit to form a new segment. Today, RheinChemie Additives already supplies a broad range of special additives and service products for the manufacture of plastics, rubber, lubricants and coatings. It employs some 1,600 people at more than 20 sites around the world.
Alongside the additives, Chemtura’s portfolio also includes urethanes and organometallics, which will be integrated into Lanxess as well. Chemtura has about 2,500 employees globally and operates at 20 sites in 11 countries.