Chemicals firm in £1bn takeover

Lucite has its global headquarters in Southampton

One of the world's largest chemical firms has been bought in a £1.05bn ($1.6bn) takeover.

Southampton-based Lucite, which manufactures methyl methacrylate (MMA), used in acrylic-based products, was purchased by Mitsubishi Rayon.

Lucite employs two thousand people worldwide with about 15 at its headquarters in the Hampshire city.

The acquisition, which is subject to approval by regulatory authorities, is expected to be completed in January.

Lucite owns the Perspex brand and was formed in 1993 from an amalgamation of the acrylics businesses of ICI and DuPont.

The acquisition is set to make Japanese firm Mitsubishi Rayon the global leader in the market.

Ian Lambert, chief executive of Lucite, said: "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."

Firms fined

Recently, the company began manufacturing MMA in Singapore using its new low-cost Alpha production technology.

Last year, Lucite generated revenues of £849m and pre-tax profits of £114m.

Masanao Kambara, president of Mitsubishi Rayon, predicted improved cost efficiency and further growth in earnings.

He added: "The acquisition of Lucite will give us an unprecedented range of production technologies in the industry."

In 2006, Lucite was one of four European firms fined a total of 345m euros ($444m; £235m) by the European Commission for fixing prices and operating a cartel in the sale of acrylic glass products.