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Albermarle Corp. Buys Rockwood Holdings for $6.2 Billion


Albermarle Corp.; a chemicals maker, has agreed to buy rival Rockwood Holdings Inc. for $6.2 billion, in order to tap into the fast growing demand for lithium products used in mobile phones and automobile batteries. Rockwood saw its shares rise 14% off the news, bringing it to $86 a share, just above the $85.53 a share that Albermarle is buying it for. Albermarle’s shares were up 5% to $76.02. James Sheehan, analyst for SunTrust Robinson Humphrey said, “Growth prospects for lithium are better than for any of Albermarle’s existing businesses.”  He also added, “They want to capture the upside potential from electrification of automobiles that’s likely to occur over the next several years.”