The logo of Lanxess AG.
Ulrich Baumgarrten via Getty Images
By Reuters
September 26, 2016

Lanxess AG (lnxsf) said on Sunday it would buy specialty chemical company Chemtura (chmt) for about $2.12 billion in cash to improve the German company’s additives business.

Lanxess’s offer of $33.50 for each Chemtura share, represents a premium of about 19% 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.

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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.

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