CHEMICAL MAKER BASELL ANNOUNCED TUESDAY IT WOULD BUY LYONDELL CHEMICAL COMPANY FOR ABOUT $12 BILLION, GIVING IT ACCESS TO LYONDELL'S COMMODITY ASSETS AND REFINING CAPACITY. BASELL HAS BEEN SEEKING ACQUISITIONS FOR ITS CHEMICAL SECTOR. THE FIRM IS OWNED BY U.S. INDUSTRIALIST LEN BLAVATNIK'S ACCESS INDUSTRIES AND WILL PAY LYONELL STOCKHOLDERS A 19.6 PERCENT PREMIUM ABOVE MONDAY'S CLOSING STOCK PRICE. THE ALL-CASH DEAL, WHICH HAS BEEN UNANIMOUSLY APPROVED BY THE BOARDS OF BOTH FIRMS, IS VALUED AT $12.14 BILLION. INCLUDING ASSUMED DEBT, THE DEAL IS VALUED AT ABOUT $19 BILLION, THE TWO COMPANIES SAID IN A STATEMENT. HOUSTON-BASED LYONDELL IS ONE OF THE LARGEST NORTH AMERICAN CHEMICAL MAKERS AND A MAJOR PRODUCER OF ETHYLENE AND PROPYLENE OXIDE, WHICH ARE USED TO MAKE PLASTICS, VARNISHES, AND OTHER PRODUCTS. LYONDELL ALSO IS A REFINER OF HEAVY, HIGH-SULFUR CRUDE OIL AND A PRODUCER OF FUEL PRODUCTS. BASELL AND LYONDELL WOULD HAVE HAD COMBINED 2006 REVENUES OF ABOUT $34 BILLION AND 15,000 EMPLOYEES AROUND THE WORLD.
