Freedonia Group Analyst Weighs In on LANXESS' Acquisition of Chemtura

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Jun 28, 2017, 14:43 ET

CLEVELAND, June 28, 2017 /PRNewswire/ -- In April 2017, German chemical producer LANXESS completed its acquisition of US-based Chemtura. While this represents a small ripple in the massive global chemical industry, it represents a huge wave in the worldwide flame retardant additive industry. Now that the transaction is finalized, LANXESS will go from being a small supplier of flame retardants (under $50 million in revenues per year) to becoming the global market leader.

For LANXESS, however, "…increasing flame retardant market share was never the goal," according to Freedonia analyst Zoe Biller. "The company planned on a leg up in the more general chemical additives industry, with dominance in this specific application as a pleasant side effect."

Diversification is especially important in this transaction, according to Biller. Chemtura's business leaned heavily toward brominated flame retardants, which are under regulatory scrutiny all over the world. LANXESS's more diverse additives portfolio will help balance out any potential revenue losses from the brominated flame retardants business.

For more information on these and other polymer additives, see the Freedonia Chemicals studies page featuring the following industry studies:

Global Silicones Market (June 2017)

Pesticide Adjuvants Market in the US (March 2017)

Global Emulsion Polymers Market (November 2016)

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SOURCE The Freedonia Group