GENEVA (AP) -- Specialty chemicals maker Clariant AG says it plans to buy German rival Sued-Chemie AG in a deal valued at euro2 billion ($2.7 billion).

The Swiss company says most Sued-Chemie shares will be swapped for Clariant shares.

Clariant said in a statement Wednesday that it will borrow 900 million Swiss francs ($930 million) to finance the deal.

Munich-based Sued-Chemie has 6,500 employees in 40 countries including the United States.

Last year it had a turnover of euro1.23 billion.

Clariant says the takeover must still be approved by competition authorities.

The Swiss firm's shares slumped 12.3 percent to 15.32 francs on the Zurich exchange.