For Albemarle, the deal is a means to pay down debt from its acquisition of Rockwood Holdings Inc. for $6 billion in 2015. It bought Rockwood’s lithium business to take advantage of demand for the lightweight metal used in rechargeable batteries in smartphones and electric cars.

"The sale of Chemetall reflects Albemarle’s continued commitment to maximizing shareholder value by investing in the future growth of our high priority businesses, reducing leverage and returning capital to shareholders,” Albemarle CEO Luke Kissam said in the statement.

The transaction value may be reduced for underfunded and unfunded pension obligations and other reasons, Albemarle said. Bank of America Merrill Lynch is advising Albemarle while Shearman & Sterling LLP is legal adviser. BASF worked with Citigroup, with legal help from Morgan, Lewis & Bockius.

Eoin Treacy's view

BASF will gain an important foothold in North America through this acquisition but the price it is paying would appear to be rather expensive and is a further testament to the asset price inflation ultra-low interest rates have contributed to. 

BASF has a broadly similar pattern to the DAX Index and continues to consolidate in the region of the trend mean. A sustained move above €70 will be required to begin to signal a return to demand dominance beyond short-term steadying. 

Albemarle is the largest producer of lithium following its acquisition of Rockwood. With this disposition it is increasing the relative weight of the metal in its revenue stream which was around 16% last year. The share has been surging higher since breaking out of a range in late February. A large overextension relative to the trend mean is evident so a break in the progression of higher reaction lows, currently near $77, would likely signal a reversionary process is underway.