Basell to acquire Lyondell Chemical Company

Dutch polyolefins firm Basell has signed an agreement to acquire the outstanding common shares of Houston, Tex.-based Lyondell Chemical Company for US$48 per common share. The cash transaction is valued at approximately US$19 billion, including the assumption of debt.

The board of directors of Basell and Lyondell unanimously approved the transaction. The acquisition will create one of the largest companies in the sector.

“Lyondell’s competitively positioned assets, access to raw material and refining capacity are excellent complements to Basell’s diversified portfolio,” said Basell CEO Volker Trautz in an official press release announcing the deal.

According to the companies, Lyondell’s three business segments ethylene, co-products and derivatives; propylene oxide and related products; and refining will complement and strengthen Basell’s business. Basell and Lyondell would have had combined revenues of approximately US$34 billion in 2006.

“We are very pleased that Basell recognizes the value and fit of our portfolio of chemical and refining assets,” said Lyondell president and CEO Dan Smith. “Basell and Lyondell share a common vision for continued success, and the combination of our companies will enhance our opportunities.”