Basell to Acquire Lyondell Chemical Company for $48 Per Share
Tuesday July 17, 6:00 am ET
HOOFDDORP, Netherlands, and HOUSTON, July 17 /PRNewswire-FirstCall/ -- Basell, the global leader in polyolefins, and Lyondell Chemical Company, one of the world's largest chemical companies, announced today that they have signed a definitive agreement pursuant to which Basell will acquire Lyondell's outstanding common shares for $48 per common share in an all cash transaction with a total enterprise value of approximately $19 billion, including the assumption of debt.
The purchase price per share represents a 45% premium to Lyondell's closing share price on May 10, 2007, the day prior to the disclosure by Access Industries, the industrial group that owns Basell, of its potential interest in Lyondell, and a 20% premium to Lyondell's closing share price on July 16, 2007. The transaction was unanimously approved by the Boards of Directors of Basell and Lyondell.
The transaction will create one of the sector's largest companies. Lyondell's three business segments -- ethylene, co-products and derivatives; propylene oxide and related products; and refining -- will complement and significantly strengthen Basell's polyolefins business. Basell and Lyondell together would have had combined 2006 revenues of approximately $34 billion and 15,000 employees around the world.
Len Blavatnik, Chairman and Founder of U.S.-based Access Industries, said: "The combination of Basell and Lyondell creates one of the top chemical companies in the world. This combination further strengthens Access' long-term strategic position in the global petrochemical industry." Commenting on the transaction, Volker Trautz, Chief Executive Officer of Basell, said: "Lyondell's competitively positioned assets, access to raw material and refining capacity are excellent complements to Basell's diversified portfolio."
"We believe this transaction offers significant value for Lyondell's shareholders," said Dan F. Smith, Chairman, President and Chief Executive Officer of Lyondell. "We are very pleased that Basell recognizes the value and fit of our portfolio of chemical and refining assets. Basell and Lyondell share a common vision for continued success, and the combination of our companies will enhance our opportunities."
The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Lyondell shareholders. This transaction is expected to close within the next several months and is not subject to financing.
Basell is the global leader in polyolefin technology, production and marketing. It is the largest producer of polypropylene and advanced polyolefin products; a leading supplier of polyethylene and catalysts, and the industry leader in licensing polypropylene and polyethylene processes, including providing technical services for its proprietary technologies. Basell, together with its joint ventures, has manufacturing facilities in 19 countries and sells products in more than 120 countries. Basell is privately owned by Access Industries.
About Access Industries
Access Industries is a privately held, U.S.-based industrial group with long-term holdings worldwide. Access was founded in 1986 by Chairman, Len Blavatnik, an American industrialist. Access' industrial focus spans three key sectors: natural resources and chemicals; telecommunications and media; and real estate.
Lyondell Chemical Company, headquartered in Houston, Texas, is North America's third-largest independent, publicly traded chemical company. Lyondell is a leading global manufacturer of chemicals and plastics, a refiner of heavy, high-sulfur crude oil and a significant producer of fuel products. Key products include ethylene, polyethylene, styrene, propylene, propylene oxide, gasoline, ultra low-sulfur diesel, MTBE and ETBE.
Source: Access Industries; Basell; Lyondell Chemical Company
Engineering News Archive