Germany's Lanxess to buy Chemtura for about $2.12 billion in cash

New Delhi: 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 additives business.

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.