SALT LAKE CITY (July 13) — Hexion Specialty Chemicals Inc. beat out Basell Holdings B.V. in the bidding for Huntsman Corp., agreeing to buy the polyurethanes and specialty chemicals producer for about $10.6 billion and assumption of debt.
Huntsman previously had agreed to sell its operation to Basell — the world's largest polypropylene maker, based in Hoofddorp, Netherlands — in a deal worth $9.6 billion. Huntsman said it canceled the sale to Basell because the Hexion offer was superior. Basell stuck by its original bid, while Hexion increased its first offer of $10.4 billion.
Basell, which is owned by New York equity fund Access Industries Inc., received a $200 million fee, split between Huntsman and Hexion, because of the contract termination, Huntsman said.
Hexion — the world's largest maker of thermoset plastics, headquartered in Columbus, Ohio — is owned by Apollo Management L.P. That New York equity fund also owns Momentive Performance Materials Inc., the former General Electric Advanced Materials silicone business.