Tokyo - Japanese chemical company Mitsubishi Rayon Co decided on Tuesday to buy Britain's Lucite International Group Ltd, which holds the world's largest share in the acrylic monomers market, the Japanese company said.

If the tender offer is completed, Lucite would become Mitsubishi Rayon's subsidiary.

Mitsubishi Rayon, which is the fourth largest firm in the market, is offering 1.6 billion dollars to buy all outstanding shares of Lucite to expand its business as the world's leading company for acrylic monomer.

The Japanese firm, which has suffered a slowing demand for acrylic fibers for clothing, hopes to expand its foothold in the acrylics monomers sector, it said.

Acrylic monomers are used in a broad range of products, including parts for liquid crystal display panels and materials for automotive parts.

Mitsubishi Rayon plans to complete the acquisition process by the end of January 2009. (dpa)