Lyondell To Sell Polyols Business
HOUSTON (AP) _ Lyondell Chemical Co. is selling sell its global polyols business and an equity interest in its U.S. propylene oxide operations to Bayer AG for about $2.45 billion.
Houston-based Lyondell is a leading maker of petrochemicals and polymers used to make products ranging from trash bags, sports equipment and packaging. The company, with 10,000 employees, posted $10 billion in 1998 sales.
Bayer is a Leverkusen, Germany-based company with major business in health care and life sciences, chemicals and imaging technologies. Last year, its polyurethanes business group, with more than 4,800 employees, had sales of about $2 billion.
``This acquisition fits us like a glove,″ Bayer chief executive Manfred Schnieder said. ``It reinforces our core business in polyurethanes and secures our position in the global market. It also gives us access to innovative, patent-protected technologies and products.″
Under the agreement, Bayer and Lyondell will also form an alliance for joint technology development and the expansion of propylene oxide production capacities.
Included in the proposed sale to Bayer are Lyondell polyols manufacturing facilities in Channelview, Texas; South Charleston and Institute, W.Va.; Rieme, Belgium; Fos sur Mer, France; Anyer, Indonesia; and Kaohsiung, Taiwan. Also included are polyols technology operations in Singapore; Villers St. Paul, France; South Charleston; and Newtown Square, Pa.
Lyondell will continue to operate all of the existing Lyondell propylene oxide facilities and will operate the polyols facilities at Channelview and Fos sur Mer.
The sale is subject to approval by the boards of both companies and U.S. and European regulators. Closing is expected to occur in the first half of 2000.