Basell signs agreement to acquire Huntsman

Basell, a major polyolefins manufacturer from the Netherlands, has signed an agreement to acquire Salt Lake City, Utah-based chemicals maker Huntsman Corporation for approximately US$9.6 billion, including the assumption of debt.

The Boards of Directors for both companies approved the deal. The transaction is expected to close in the fourth quarter of 2007.

“Basell’s industry-leading polyolefins businesses and Huntsman’s businesses will benefit from the expertise both companies have demonstrated in technology, innovation and customer service,” said Basell CEO Volker Trautz in a press release. “Together we will be able to achieve even more.”

With combined revenues of more than US$26 billion and nearly 20,900 employees in 2006, the acquisition will create one of the largest players in the global chemical industry.

According to the companies, the combined corporation will have an extensive geographic footprint, with operations on all continents of the world.

“The merger of Basell and Huntsman creates one of the largest chemical companies in the world,” said Huntsman president and CEO Peter Huntsman. “I am confident that this combination will allow us to even more effectively pursue our underlying business strategies and continue to provide rewarding opportunities for our associates.”