NewsFlashBasell to acquire Lyondell in $19bn deal

17 July 2007 11:31  [Source: ICIS news]

Basell acquires Lyondell in $19bn dealLONDON (ICIS news)--Access Industries’ Basell has agreed to acquire US petrochemicals major Lyondell for $19bn (€14bn) including debt, the companies said on Tuesday.

The agreed transaction price of $48/share represents a premium of 10% on Lyondell’s closing share price on 16 July, and is 45% higher than the US firm’s stock price on 10 May when Basell’s owners, Access Industries, disclosed an initial interest in the US firm.

The not-unexpected move to acquire the major US olefins producer and North America's third largest publicly-traded chemical company followed Basell’s unsuccessful bid for Huntsman.

Huntsman agreed to an offer from Apollo management owned Hexion Specialty Chemicals on 12 July.

“The combination of Basell and Lyondell creates one of the top chemical companies in the world," said Len Blavatnik, chairman and founder of US-based Access Industries.

“This combination further strengthens Access’ long-term strategic position in the global petrochemical industry," he added.

Basell and Lyondell would have had combined revenues in 2006 of about $34bn and 15,000 employees.

($1 = €0.73)

By: Nigel Davis
+44 20 8652 3214

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