EC clears Basell’s acquisition of Lyondell

26 October 2007 17:34  [Source: ICIS news]

TORONTO (ICIS news)--The European Commission (EC) on Friday cleared Basell’s proposed $19bn acquisition of Lyondell, saying the deal did not impede competition.

 

The two companies’ business in Europe was largely complementary as Basell focused on polyolefins and Lyondell on propylene oxide (PO), with only very limited overlaps, the commission said.

 

In terms of vertical markets, there would be a link between Basell’s ethylene and propylene production and sales and Lyondell’s PO products.

 

However, this did not pose the risk of markets being closed off as Basell’s upstream presence was very limited, the commission said.

 

The commission did not see any competitive risks in markets for technologies for polyolefin production, either.

 

Basell successfully licenses technologies for the manufacture of both polyethylene (PE) and polypropylene (PP). While Lyondell owns several PE technologies, it had not managed to license those over the past 12 years, the commission said.

 

In addition, Lyondell was no longer participating in PP technologies after selling its stake in Novolen Technology.

 

Lyondell shareholders are scheduled to vote on the acquisition by Basell on 20 November.

 

By: Stefan Baumgarten
+1 713 525 2653

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