Japanese acrylics firm to acquire Lucite International

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Mitsubishi Rayon has announced that it is to undertake a $USD1.6 billion (AUD$2.5 million) cash takeover of Lucite International Group.

It is expected that the acquisition will be completed by the end of January 2009, subject to approval from the relevant regulatory authorities.

Lucite is the world's leading manufacturer of methyl methacrylate (MMA) and has invested heavily in a new low cost production route, known as Alpha technology.

Mitsubishi Rayon will become the global leader in the acrylics market.

Commenting on the announcement, Ian Lambert, chief executive of Lucite, said: "The board of Lucite International welcomes the acquisition of the group by Mitsubishi Rayon today.

"We believe the new combined enterprise will create an opportunity for significant cross learning, productivity and efficiency gains that will benefit our customers and stakeholders."

Meanwhile, Masanao Kambara, president of Mitsubishi Rayon, said that the acquisition would give the company an "unprecedented range of production technologies".

Established on August 31st, 1933 Mitsubishi Rayon began life in 1933 as a manufacturer of rayon staple.