Lanxess is buying Chemtura for $2.7 billion

In a bid to expand its business in additives for lubricants and flame retardants, specialty chemical maker Lanxess AG is buying U.S.-based flame retardants and lubricant additives group Chemtura Corp. for US$2.7 billion.

“With this acquisition, we are forming a major global player in the field of additives and are significantly strengthening our already profitable portfolio,” said Matthias Zachert, CEO of Cologne, Germany-based Lanxess.

The boards of both companies have unanimously approved the deal, which is expected to close around mid-2017, Chemtura said in a statement.

Chemtura, based in Middlebury, Conn., has 20 sites in 11 countries and approximately 2,500 employees worldwide; its Rhein Chemie business additives unit employs about 1,500 workers at 20 sites.