Is rising pressure from the U.S. hindering sale of Basell to Iran?

03-May-05

Could Iranian National Petrochemical Company (NPC)'s planned purchase of Basell; world's top polypropylene producer, be getting more difficult due to strong U.S. opposition? NPC seems the likely contender to buy Basell from Germany's BASF and Royal Dutch/Shell at around 4.4 billion euros ($5.7 billion) - a deal that could be Iran's biggest commercial investment abroad since the Islamic revolution in 1979. But several deadlines to complete the transaction have slipped by. Some of Basell's assets are based in USA, making the transaction complicated since relations with Iran are currently extremely difficult as Iran is viewed by USA as a sponsor of terrorism. Iran may resume work related to uranium enrichment after talks with the European Union failed to reach a breakthrough over the long-term future of its disputed nuclear program. However, a possible refusal to Iran could put at risk Shell's reputation, because it is developing its energy interests in that country.