Middlebury, Connecticut -Â Chemtura Corp. has signed a letter of intent to sell its EPDM and rubber chemical businesses. Chemtura did not say which company it is currently negotiating with.
In a statement, Chemtura said, "The parties are working toward a definitive agreement, which is expected to be signed by the end of the year. The transaction is subject to regulatory approvals. Proceeds from the sale will be used primarily for debt reduction."
The EPDM and Rubber Chemicals businesses being sold had revenues for the twelve months ended 30 Sept, 2006 of approximately $300 million.
In recent months, Lanxess AG has indicated a willingness to look at acquisitions, notably in the EPDM sector. Lanxess also has a fund of up to â‚¬2000 million to make acquisitions and Lanxess management notes that it has significant expertise and experience in turning around under-performing chemical businesses.
Lanxess declined to make any comment on the Chemtura announcement.
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Statement from Chemtura