Basell to acquire Lyondell
17 Jul 2007
Hoofddorp, The Netherlands – Basell is paying $19 billion in cash to acquire Lyondell Chemical Co. including the assumption of debt, under an agreement announced by the companies on 17 July. The deal comes just after the failure of Basell’s attempt to buy Huntsman Corp., when its offer was trumped at the 11th hour by Hexion Specialty Chemicals.
Under the deal, Lyondell’s three business segments -- ethylene, co-products and derivatives; propylene oxide and related products; and refining -- will join Basell's polyolefins-based portfolio. The deal, said Basell, is expected to close within the next several months and is not subject to financing.
The companies together have combined 2006 sales of around $34 billion and 15,000 employees worldwide.
“The combination of Basell and Lyondell creates one of the top chemical companies in the world. This combination further strengthens Access' long-term strategic position in the global petrochemical industry,” said Len Blavatnik, chairman and founder of Basell’s owner US-based Access Industries.
“Lyondell's competitively positioned assets, access to raw material and refining capacity are excellent complements to Basell's diversified portfolio,” added Volker Trautz, chief executive officer of Basell.