BATON ROUGE, La. (AP) — Specialty chemicals company Albemarle is buying counterpart Rockwood Holdings Inc. in a cash-and-stock deal valued at about $6.2 billion.
Rockwood shareholders will receive $50.65 in cash and 0.4803 of a share of Albemarle common stock for each share they own. The deal values Rockwood at $85.53 per share.
There has been some consolidation in the sector in recent years and heavyweights like Dow Chemical focus more on higher-margin specialty chemicals. To compete and lower costs, competitors are growing through significant acquisitions.
Huntsman in September announced it would spend more than a billion to acquire Rockwood Holdings, based in Princeton, N.J. The company makes specialty chemicals and advanced materials for customers including the auto, electronics and construction industries.
Cabot Corp. bought the Dutch company Norit NV for $1.1 billion to strengthen its specialty chemicals portfolio.
Eastman Chemical spent more than $3 billion on Solutia, a St. Louis company that makes materials and specialty chemicals used in the automotive and architectural industries.
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