Basell acquires Lyondell Chemical for $20 billion

By Lisa Kerner

Charlotte, N.C., Dec. 20 - Basell AF SCA and Lyondell Chemical Co. merged to form LyondellBasell Industries, it was announced on Thursday.

The companies entered an agreement and plan of merger on July 16.

Basell, owned by Access Industries, acquired Lyondell's outstanding common shares for $48 each in an all-cash transaction valued at $20 billion including the assumption of debt.

"With the combination of Basell and Lyondell, we have created a global leader in the petrochemical industry, with exceptional capabilities in both chemicals and fuels," LyondellBasell chief executive officer Volker Trautz said in a company news release.

Access Industries founder and chairman Len Blavatnik called LyondellBasell "a dynamic addition to Access's industrial portfolio."

Lyondell is a Houston-based chemical manufacturing company.

Basell produces polypropylene and advanced polyolefin products. Based in Hoofddorp, the Netherlands, Basell is privately owned by Access Industries, a U.S.-based industrial group.

LyondellBasell businesses include polymers, chemicals, fuels and technology with combined pro forma revenues of nearly $43 billion for the 12 months ended Sept. 30, 2007, the release stated.

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