10.10.05
Lyondell Chemical Company and Millennium Chemicals Inc. announced March 29 that their boards of directors have approved, and the companies have executed, a definitive agreement for a stock-for-stock business combination of the companies. As a result, Millennium, the second-largest producer of TiO2 in the world, will become a wholly owned subsidiary of Lyondell.
Based on recent trading, the transaction is valued at approximately $2.3 billion, including approximately $1.3 billion of Millennium net debt. The transaction is subject to customary conditions including approval by both companies’ shareholders, and is expected to close in the third quarter of 2004.
The transaction will create North America’s third-largest independent, publicly-traded chemical producer with combined pro forma 2003 revenues of more than $11 billion and market capitalization of nearly $4 billion. The combined company will operate in 16 countries and employ approximately 10,000 people worldwide.
After the close of the transaction, the company will be called Lyondell Chemical Company and will be headquartered in Houston, TX. Dan F. Smith will continue as president and CEO, and Dr. William T. Butler will continue as the independent chairman of the Lyondell board of directors. Two independent members of Millennium’s current board will join the Lyondell board, effective at the time of the closing.
The transaction combines two U.S. chemical companies that are well positioned globally, with leading positions in propylene oxide and derivatives, titanium dioxide (TiO2) and acetyls. And, through their Equistar joint venture – a North American producer of ethylene, propylene, polyethylene and aromatics – they have significant leverage to the petrochemical cycle.
Based on recent trading, the transaction is valued at approximately $2.3 billion, including approximately $1.3 billion of Millennium net debt. The transaction is subject to customary conditions including approval by both companies’ shareholders, and is expected to close in the third quarter of 2004.
The transaction will create North America’s third-largest independent, publicly-traded chemical producer with combined pro forma 2003 revenues of more than $11 billion and market capitalization of nearly $4 billion. The combined company will operate in 16 countries and employ approximately 10,000 people worldwide.
After the close of the transaction, the company will be called Lyondell Chemical Company and will be headquartered in Houston, TX. Dan F. Smith will continue as president and CEO, and Dr. William T. Butler will continue as the independent chairman of the Lyondell board of directors. Two independent members of Millennium’s current board will join the Lyondell board, effective at the time of the closing.
The transaction combines two U.S. chemical companies that are well positioned globally, with leading positions in propylene oxide and derivatives, titanium dioxide (TiO2) and acetyls. And, through their Equistar joint venture – a North American producer of ethylene, propylene, polyethylene and aromatics – they have significant leverage to the petrochemical cycle.