LyondellBasell's Plastics Business to Double with Schulman Deal

Posted by Joseph Keefe
Thursday, February 15, 2018
Petrochemicals company LyondellBasell Industries NV will buy plastic composites maker A. Schulman Inc for $1.24 billion, doubling the size of its plastics business.
LyondellBasell will pay $42 per share, an 8.7 percent premium to Schulman's Wednesday close, the companies said on Thursday. Schulman's shares were trading at $42.15 before the opening bell.
The deal comes amid a wave of big mergers in the chemicals sector. Dow Chemical and DuPont completed their $130 billion merger last year to form DowDuPont, while ChemChina bought Swiss seeds group Syngenta for $43 billion.
Including A. Schulman's existing debt, the deal is valued at $2.25 billion, the companies said.
The combined company is expected to have $150 million in run-rate cost savings. The deal will add to earnings within the first full year after closure, the companies said.

J.P. Morgan and Dyal Co are LyondellBasell's financial advisers and Citigroup Global Markets is advising A. Schulman. (Reporting by Ahmed Farhatha 

Categories: Contracts Energy Finance Fuels & Lubes Legal Mergers & Acquisitions

Related Stories

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Chinese Contractor Secures Offshore Oil and Gas ‘Mega Deal’ from QatarEnergy

DOF Secures Moorings Hook-Up Job in Asia Pacific

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

PTTEP Buys Chevron's Hess Unit Share of Southeast Asia’s Offshore Block for $450M

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

Current News

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com