LyondellBasell ownership to change under new JV

06 May 2009 18:50  [Source: ICIS news]

(Recast for clarity)

HOUSTON (ICIS news)--Access Industries said on Wednesday it has entered into an agreement with Germany’s ProChemie Holding to form a new joint venture that will own LyondellBasell.

The new company, to be named ProChemie GmbH, will be equally owned by Access Industries and ProChemie Holding.

LyondellBasell on 6 January filed for bankruptcy protection in the US. The company plans to emerge from bankruptcy by the end of 2009.

The deal will give Access Industries flexibility to invest additional funds in LyondellBasell as part of the bankruptcy process, but without triggering unfavourable tax consequences for the company, Access said.

Access Industries said it would contribute its equity ownership in LyondellBasell in exchange for a 50% interest in ProChemie GmbH.

The initial assets in the joint venture will comprise Access’ equity in LyondellBasell and assets currently owned by ProChemie Holding, an Access Industries spokesperson said.

No further financial details were available. ProChemie could not be reached for comment.

Access Industries has already filed documents in Europe notifying regulators of its intent to change the ownership structure of LyondellBasell, a LyondellBasell spokesman said.

LyondellBasell’s spokesperson in Houston confirmed the plan. The spokeperson said the ownership change would have no impact on LyondellBasell’s day-to-day operations.

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By: William Lemos
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