Basell to acquire Lyondell for $12 billion

18 July 2007

Mumbai: Dutch chemicals and plastics maker Basell, which lost out to Apollo Management's Hexion Specialty Chemicals in a bid for Huntsman Corp, is acquiring Lyondell Chemical Co. for about $12.14 billion.

Privately held Basell AF SCA, which is owned by US industrialist Len Blavatnik's Access Industries, will pay Lyondell stockholders $48 per common share.

The all-cash deal, which values Lyondell at $12.14 billion based on a 19.6 per cent premium to its share price of $40.12 as of July 16, has a total enterprise value of about $19 billion, including the assumption of debt, the companies said in a joint statement.

The deal is expected to close within the next several months.

The transaction, which has been unanimously approved by the boards of directors of both Basell and Lyondell, would give Basell access to Lyondell's commodity assets and refining capacity.