Polyolefins giant Basell (Hoofddorp / The Netherlands; www.basell.com) is to acquire US chemicals producer Lyondell Chemical (Houston, Texas; www.lyondell.com) in a deal worth USD 19 bn. The purchase, which creates a global leader in polypropylene and high and low density polyethylene, follows on the heels of Basell's failed bid to buy Huntsman (Salt Lake City, Utah / USA; www.huntsman.com) which has been acquired by private equity investor Apollo (New York / USA; www.apolloic.com) – see Plasteurope.com of 13.07.2007.

At USD 48 per share, the acquisition represents a 20% premium on Lyondell's closing price on the day prior to its announcement. In May, Len Blavatnik, chairman of Access Industries which bought Basell for USD 5.7 bn in 2005, acquired an 8.3% stake in Lyondell Chemical through the purchase of 21m shares at USD 32.11 per share, stating a "long-term strategic interest" in chemicals and plastics – see Plasteurope.com of 16.05.2007.

Lyondell operates in three business segments – ethylene, co-products and derivatives, propylene oxide and related products, and refining – complementing Basell's polyolefins business. Basell and Lyondell together had combined 2006 revenues of around USD 34 bn and 15,000 employees worldwide.