Phillips, Chevron in Chemical Pact
BARTLESVILLE, Okla. (AP) _ Phillips Petroleum Co. and Chevron Corp. have the all-clear from regulators and expect on Saturday to close the deal combining their chemicals businesses, the companies said Friday.
The 50-50 joint venture, to be called Chevron Phillips Chemical Co., will create a Houston-based company worth more than $6 billion in assets. It will produce olefins, polyolefins, aromatics and styrenics.
The new company will employ up to 6,000 people. As a result of the combination, jobs will be cut from the parent companies, but a Phillips spokeswoman said Friday she wasn’t certain how many or where the reductions would be made.
It will obtain $1.8 billion of debt financing and will make one-time cash distributions of about $800 million to each parent.
Chevron Phillips Chemical will be one of the world’s top five producers of olefins and polyethylenes and will be among the top three producers of aromatics and alpha olefins.
The deal does not include Chevron’s Oronite additives business, which develops, manufactures and markets fuel and lubricant additives.