Eastman Chemical to Acquire Solutia

Eastman Chemical

will buy Solutia

, and take on the company's debt, for $4.7 billion in a move that will expand Eastman's presence in the materials and specialty chemicals market. Solutia shareholders will get $22 in cash and .12 shares of Eastman common stock per share of Solutia they own. The acquisition represents a 42 percent premium on Solutia's value. Eastman is hoping that the acquisition will help them expand into the Asia Pacific region, where Solutia has a greater presence than Eastman. Shares in Solutia were up over 33% in pre-market trading on the news.