Latest news with #olefins
Yahoo
2 days ago
- Business
- Yahoo
LyondellBasell in Exclusive Talks to Sell Four European Assets to AEQUITA
LyondellBasell Industries N.V. (NYSE:LYB) has announced it has reached an agreement and entered exclusive negotiations with AEQUITA to sell select olefins and polyolefins assets and operations in Europe. These assets, previously identified as part of LYB's strategic review, are located in Berre (France), Münchsmünster (Germany), Carrington (UK), and Tarragona (Spain). A factory worker monitoring a conveyor belt of specialty chemicals being produced. The deal includes both integrated and standalone facilities, along with central support functions based in Rotterdam and other locations. These sites form a sizable olefins and polyolefins platform well-positioned near key customers and connected to essential infrastructure. Peter Vanacker, LyondellBasell Industries N.V. (NYSE:LYB)'s chief executive officer, made the following comment: 'This contemplated transaction is a significant step in LYB's transformation to Grow and Upgrade our Core. We are committed to operate our assets safely and reliably throughout this process and will continue to support our customers, employees and other key stakeholders. Europe remains a core market for LYB and one we will continue to participate in following this transaction with more of a focus on value creation through establishing profitable leadership in circular and renewable solutions.' The transaction is expected to close in the first half of 2026, pending consultation with employee representatives and regulatory approvals. Citi and J.P. Morgan Securities LLC are serving as financial advisors, with Linklaters LLP acting as legal counsel for LyondellBasell. LyondellBasell Industries N.V. (NYSE:LYB) is a global leader in the chemical industry, focused on advancing sustainable solutions and supporting a circular, low-carbon economy through innovation and investment. While we acknowledge the potential of LYB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
LyondellBasell in talks to sell some European assets to AEQUITA
June 5 (Reuters) - Chemical maker LyondellBasell (LYB.N), opens new tab said on Thursday it is in exclusive talks with Munich-based investment firm AEQUITA for the sale of certain olefin and polyolefin assets in Europe. LyondellBasell launched a strategic review of its European operations last year in a bid to navigate macroeconomic volatility. Chemical companies have been struggling due to weaker demand and rising raw material costs, especially in Europe. A rigorous regulatory landscape is also compelling businesses to reassess their approach in the region. "There was never going to be a great option to separate these unprofitable and cash negative assets, at least in today's cyclically depressed market," Vertical Research Partners analyst Kevin McCarthy said. "While the deal at hand will be cash negative to Lyondell, it does provide for a clean exit that will allow management to advance its corporate strategy, while also mitigating cash bleed on an operating basis." The sites to be sold, which are located in France, Germany, the UK and Spain, were part of previously announced strategic assessments, the company said. LyondellBasell's shares rose marginally in morning trading following the announcement. The companies have signed an agreement, a so-called 'put option deed', under which AEQUITA will enter a form purchase agreement if LyondellBasell exercises its put option after the conclusion of certain works council consultation processes. "We see the deal as a net positive for LYB, as it streamlines LYB's global portfolio, frees up capital, and exits lower EBITDA generating businesses with future pension and environmental liabilities," Wells Fargo analysts said. The proposed deal is expected to close in the first half of 2026.
