Eastman Chemical buying Taminco for about $1.73B

ALLENTOWN, Pa. (AP) — Eastman Chemical Co. is buying specialty chemical company Taminco for approximately $1.73 billion.

Eastman Chemical will pay $26 per share, a 9 percent premium to Taminco Corp.'s Wednesday closing price of $23.88.

The companies put the deal's total value at about $2.8 billion.

The deal includes a 30-day period in which Taminco can seek offers from other potential buyers.

Both companies' boards have approved the deal, which is expected to close in the fourth quarter. It still needs approval from a majority of Taminco's shareholders.

Shares of Taminco, based in Allentown, Pennsylvania, surged, $2.63, or 11 percent, to $26.51 in Thursday morning trading. Shares of Eastman Chemical, based in Kingsport, Tennessee, climbed 83 cents to $84.05.