HOUSTON (March 30)—Lyondell Chemical Co. will acquire Millennium Chemicals Inc. in a $2.3 billion transaction that will make Lyondell the third largest independent, publicly traded chemical producer in North America.
The deal, expected to close in the third quarter, includes Equistar Chemicals L.P., a joint venture between the two firms that produces ethylene, propylene, polyethylene and aromatics, and about $1.3 billion of Millennium net debt. Millennium shareholders will receive between 0.95 and 1.05 shares of Lyondell common stock for each share of Millennium stock.
The combined company will be based in Houston, employ 10,000 in 16 countries and have pro forma revenues of more than $11 billion with market capitalization of nearly $4 billion. Millennium will become a wholly owned subsidiary of Lyondell. Dan F. Smith will continue as president and CEO and William T. Butler will remain chairman. Two members of Millennium's board will join the Lyondell board when the transaction closes.
Lyondell's product lineup includes propylene oxide, PO derivatives and styrene monomer while Millennium produces titanium dioxide, zircon, silica gel and other materials.