Lyondell Chemical Co. has agreed to be acquired by Netherlands-based Basell for US$48 a share. The offer values Lyondell at about US$12.72 billion and also involves the assumption of about US$6.5 billion of debt. The buyout price works out to a premium of nearly 19% over Houston-based Lyondell's Monday closing price of US$40.12 a share. Both companies' boards have approved the deal, expected to close within several months. Lyondell operates in three business segments -- ethylene, propylene oxide, and refining -- and these will complement and Basell's polyolefins business. This acquisition continues the consolidation wave in the chemical industry and gives Basell access to a key raw material and Lyondell's refining capacity.
Acquisition of Lyondell follows Basell's losing out in efforts to buy Huntsman Corp., another U.S. chemicals company.
18-Jul-07 
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