Issue 19/2016 - LANXESS plans to acquire Chemtura AG of the United States

LANXESS plans to acquire Chemtura
, a US-based company
, recently announced that it plans to acquire Chemtura.
The move will be the largest acquisition in LANXESS's history, and the company will build its own additive portfolio and become one of
the world leaders in this emerging market.
The parties have entered into a definitive acquisition agreement, which is expected to close in mid-2017, subject to Chemtura shareholder approvals, necessary management approvals and certain other conventional financing completion conditions
.

"With this acquisition, we will create a champion in the field of additives and further the profitability of
LANXESS's product portfolio.
" Chang Mutian, Chairman of the Board of Management of LANXESS AG, said, "With this acquisition, we will continue to further implement LANXESS's strategy and build a more adaptable and profitable company
.
" Today, we are building up our leading position in the mid-sized market and strengthening our position
in North America.
LANXESS has taken another important step
forward in its growth.
"
For LANXESS, earnings per share will be higher in the first fiscal year after the acquisition of Chemtura, with annual synergistic earnings expected to reach around EUR 100 million by 2020
.
In this acquisition, LANXESS spent 7 times the current corporate value, including the synergies of the acquisition, and achieved the target of
7~9 times including synergies.

The primary pillars of Chemtura's additives business include lubricant additives, as well as synthetic lubricants for industrial applications; The second pillar business is mainly brominated flame retardant additives, elemental bromine and its derivatives
.