Mitsubishi Rayon to buy Britain's Lucite for 1.6 bn dollars

TOKYO: Japan's Mitsubishi Rayon Co. said Tuesday it would acquire British chemical producer Lucite International Group Ltd. in a friendly takeover worth about 1.6 billion dollars.

Mitsubishi Rayon said the acquisition would enable it to become a leading manufacturer of methyl methacrylate, which is used in car parts and electronics devices such as liquid crystal displays.

It plans to make Lucite a subsidiary by purchasing all of its outstanding shares.

Mitsubishi Rayon has already reached an agreement with Charterhouse Capital Partners LLP to acquire its 81.6 percent stake in Lucite.

"In addition to our company's manufacturing bases in Asia, Lucite's production sites in the United States and Europe will enable us to establish a trilateral production system," the Japanese company said.

"This will not only strengthen our customer bases in these regions but also will accelerate our business development in emerging markets in East Europe, Russia and South America," it added.

The firms hope to complete the acquisition in January next year .