Huntsman

(HUN) - Get Report

agreed to be acquired by Dutch chemical giant

Basell

for roughly $5.6 billion.

Basell will pay $25.25 a share for Huntsman, a maker of chemicals and pigments. The price represents a 34% premium over Huntsman's closing price of $18.90 Monday.

Including the assumption of debt, the deal is valued at $9.6 billion.

Basell, a maker of polypropylene and polyolefin products, is owned by privately held Access Industries. Combined, Basell and Huntsman had 2006 revenue of more than $26 billion.

"Basell's industry-leading polyolefins businesses and Huntsman's businesses will benefit from the expertise both companies have demonstrated in technology, innovation and customer service," said Basell CEO Volker Trautz. "Together we will be able to achieve even more."

Entities controlled by MatlinPaterson and the Huntsman family, who collectively own 57% of Huntsman's common stock, have agreed to approve the deal. The transaction is expected to close in the fourth quarter.

Shares of Huntsman were jumping $5.40, or 29%, to $24.30 early Tuesday.