US Huntsman expects few layoffs in Basell sale

03 July 2007 19:01  [Source: ICIS news]

HOUSTON (ICIS news)--US chemicals producer Huntsman does not expect to lay off many employees in connection to its pending $9.4bn (€6.7bn) sale to Basell's owner, Access Industries, according to documents it filed on Tuesday with federal regulators.

Moreover, the sale will not likely affect employees' wages, salaries or benefits, Huntsman said in the filings.

The filings are copies of documents that Huntsman gave to its employees. In the documents, Huntsman also gives its employees the reasons behind the sale.

Company chairman Jon Huntsman wants to sell his shares in the company to fund several humanitarian and philanthropic projects, the documents said. Investment fund Matlin Patterson must eventually liquidate its Huntsman investment so it can return money to its investors.

Access has indicated that it will operate Huntsman as a stand-alone business, maintain the company's four divisions and keep its headquarters in The Woodlands, Texas, the documents said. Huntsman does not expect the sale will change any of its strategy, plans and projects.

Huntsman said it will complete the sale of its US base chemicals and polymers division to Flint Hills Resources in 2007. Contracts with existing customers and suppliers will continue.

Basell said it will not close any Huntsman plants. Basell will preserve Huntsman's agreements with unions.

If approved by government regulators, the sale should close in the fourth quarter of 2007, Huntsman said.

($1 = €0.73)

By: Al Greenwood
+1 713 525 2645

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly