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Lyondell Chemical is buying illennium Chemicals in a stock and debt swap transaction worth $2.3bn.
The deal, which is expected to close in the third quarter, will create the third largest chemical group in the US behind Dow Chemical and DuPont.
The new group will have revenues in excess of $11bn and market capitalisation of nearly $4bn. The merged group will be known as Lyondell Chemical and have leading positions in propylene oxide and derivatives, titanium dioxide and acetyls.
Lyondell will gain full control of the Equistar olefins joint venture plus all its revenues. Analysts say the merger should prevent more disagreements about capex spending …