Lanxess said Monday it will pay Chemtura shareholders $33.50 per share in cash, about a 19 percent premium to the Philadelphia's company's Friday closing price of $28.18.
"The transaction provides premium value to our shareholders and benefits our customers and employees by making Chemtura part of a much larger, stronger global enterprise with the resources to fully support a more diverse suite of specialty chemicals products and services," Craig Rogerson, CEO and chairman of the board of Chemtura, said in a press release.
Lanxess said it expects annual synergies of about 100 million euro (about $113 million) by 2020.
Both companies' board's approved the deal, which is expected to close around mid-2017.
With Monday's gains, Chemtura's stock is up more than 19 percent this year.