Bayer to Buy Lyondell Polyols Business
Lyondell will continue to be an important merchant supplier of PO and will focus on expanding its other PO derivatives businesses, including propylene glycol, butanediol (where the Company has proprietary technology) and propylene glycol ethers.
As part of the transaction, Lyondell and Bayer have agreed to pursue a joint venture for the construction of PO 11, a previously announced worldscale propylene oxide/styrene monomer plant in Europe.
Included in the proposed sale to Bayer are Lyondell polyols manufacturing facilities located at South Charleston and Institute, West Virginia; Channelview, Texas; Rieme, Belgium; Fos sur Mer, France; Anyer, Indonesia; and Kaohsiung, Taiwan. Also included in the transaction are Lyondell polyols technology operations in Singapore; Villers St. Paul, France; South Charleston, West Virginia, and Newtown Square, Pennsylvania. Not included is Lyondell's global TDI business. Lyondell will continue to operate all of the existing Lyondell PO facilities and will serve as operator of the polyols facilities at Channelview, Texas, and Fos sur Mer, France.
The agreement is subject to final approval by both companies at Board meetings in December. Closing of the transaction is subject to U.S. and European antitrust clearance and other conditions that are typical for transactions of this type. Closing is anticipated to occur in the first half of 2000.
Lyondell Chemical Company is a worldwide producer of propylene oxide.
For more information: Jackie Wilson, Tel: 713-652-4596.