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AMSTERDAM (AP) Dutch chemicals maker Royal DSM NV has struck a deal to buy Canada's Patheon Inc. for $195 million (145 million euros), combine it with its own drug manufacturing operations, and spin them off into a new larger company.

Under the deal announced Tuesday, DSM will contribute its own drug manufacturing operations which are larger than those of Patheon to the new company.

The private equity firm JLL will buy a 51 percent stake in the new company for $489 million. That money will be used to kick $200 million back to DSM and also to buy Patheon.

Patheon's managers, who own a majority of their company, have agreed to the firms' $9.32 per share takeover offer. That's a 68 percent premium to Patheon's closing price Monday.