Chemicals maker Albemarle Corp said it would purchase rival Rockwood Holdings Inc for $6.2 billion to tap the fast-growing demand for lithium products used in mobile phone and automobile batteries.Lithium's use in rechargeable batteries for cell phones and laptops is expected to grow steadily, while its use in batteries for hybrid and electric vehicles is likely to take off in the coming decades.The deal will give Albemarle access to Rockwood's key assets in the Atacama Desert, Chile, providing a low-cost base for lithium production.The combined company will also have strong presence across three high-margin businesses - supplying catalysts to refineries, bromine for use in offshore drilling and emission control and surface treatment products to the automobile and aeroplane industries.
Albemarle Corporation (Albemarle) is a developer, manufacturer and marketer of specialty chemicals, which meet customer needs across a range of end markets, including the petroleum refining, consumer electronics, plastics/packaging, construction, automotive, lubricants, pharmaceuticals, crop protection, food-safety and custom chemistry services markets. Shares of ALB traded higher by 0.86% or $0.62/share to $72.62. In the past year, the shares have traded as low as $60.16 and as high as $72.79. On average, 481231 shares of ALB exchange hands on a given day and today's volume is recorded at 478040.
Rockwood Holdings, Inc. (Rockwood) is a developer, manufacturer and marketer of specialty chemicals and advanced materials used for industrial and commercial purposes. Shares of ROC remained unchanged at $75.70. In the past year, the shares have traded as low as $62.37 and as high as $82.00. On average, 857139 shares of ROC exchange hands on a given day and today's volume is recorded at 0.
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