Recently, two chemical giants, LyondellBasell Industries and A. Schulman, Inc, announced the signing of a definitive agreement - which will enable LyondellBasehl to acquire Schulman for $ 2.25 billion.
Leander Basel is one of the world's largest producers of ethylene and propylene oxide, and Schulman is a modified plastics company based in the US with a market capitalization equal to that of a blonde technology whose current market capitalization is 16.1 billion.
In its announcement, LyondellBasell said it will acquire 100% of Schulman's shares in cash, at a price of $ 42 a share, and take on Schulman's unliquidated and some other debt.
Analyst Pickering said three reasons contributed to the deal: 1: strong alliances, third and fourth in the market will replace PolyOne as a leader; 2: more attractive prices; 3: complementary advantages.
The acquisition will help expand Leander Basel's existing platform with a view to building an innovative polymer solutions business with advanced technology and diversified products worldwide.
Prior to the acquisition of Schulman, Leander Basel was principally engaged in the copolymerization of PE and PP, and its PP co-polymerization business was well-known in the world for automotive applications. With the acquisition of Schulman, the product line of Leander Basel will be even more Rich, not only PE, PP copolymer, as well as pigments, masterbatch, split and engineering plastics composite materials, infiltration of the terminal market will also be more abundant, in addition to cars, there will be packaging and consumer products, electronic appliances, building materials And so on.
Currently, LyondellBasell has enough cash to back the acquisition and is expected to achieve a synergy of $ 150 million within two years and also expect the acquisition to be profitable in a year.
It is reported that the offer has been approved by the board of directors of LyondellBase and Schulman, according to the usual conditions for the transaction, will need to obtain the approval of regulatory authorities and shareholders of Schulman It is estimated that the acquisition will be completed in the second half of 2018.