Basell to buy Huntsman

Hoofddorp, The Netherlands -- Polyolefins major Basell is to acquire Huntsman Corp. -- one of the world’s largest manufacturers and marketers of differentiated chemicals and pigments – in a deal valued at around $9.6 billion, including the assumption of debt. The deal is expected to be completed in the fourth quarter of 2007 subject to various approvals, Basell said 26 June.

The merger of Basell and Huntsman creates one of the largest chemical companies in the world. In 2006, Basell and Huntsman reported combined revenues of over $26 billion and employed approximately 20,900 people.

Basell is the world’s largest producer of polypropylene and advanced polyolefin products; a major supplier of polyethylene and catalysts, and a leader in licensing polypropylene and polyethylene process technologies.

Huntsman is a global manufacturer of differentiated chemicals and pigments, including plastics, polyurethanes, textiles, paints & coatings, construction materials, personal care and packaging products. The company had 2006 revenues from all operations of over $13 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. Together we will be able to achieve even more,” Volker Trautz, CEO of Basell, said in a 26 June announcement.

“This transaction enhances our position as a global industrial group with long-term strategic assets in the chemicals industry,” added Len Blavatnik, chairman and founder of US-based industrial group Access Industries, which owns Basell.

According to Jon Huntsman, founder and chairman of Huntsman Corp. I am confident Basell is the right owner for the company going forward. “The proceeds of this transaction will allow our family to focus more effectively on the elimination of human suffering and on finding cures for cancer,” he stated.