By Lisa Kerner
Charlotte, N.C., June 26 - Basell entered into a definitive agreement to acquire Huntsman Corp. for $25.25 per share in a cash transaction valued at about $9.6 billion, including debt.
Both companies' boards of directors unanimously approved the deal, which is expected to close in the fourth quarter of 2007.
Entities controlled by MatlinPaterson and the Huntsman family, who collectively own 57% of Huntsman's common stock, have also agreed to approve the transaction.
The combined company will have an extensive geographic footprint, with operations on all continents of the world, and will be well positioned in fast-growing markets such as China, India, Eastern Europe and Latin America, according to a news release. In 2006, Basell and Huntsman had combined revenues of more than $26 billion and employed roughly 20,900 people.
"Basell's industry-leading polyolefins businesses and Huntsman's businesses will benefit from the expertise both companies have demonstrated in technology, innovation and customer service," Basell chief executive officer Volker Trautz said in the release.
"The proceeds of this transaction will allow our family to focus more effectively on the elimination of human suffering and on finding cures for cancer," Huntsman founder and chairman Jon M. Huntsman added.
Basell produces polypropylene and advanced polyolefin products. Based in Hoofddorp, the Netherlands, Basell is privately owned by Access Industries.
Huntsman is a Salt Lake City manufacturer of differentiated chemicals and pigments.
| Acquirer: | Basell
|
| Target: | Huntsman Corp.
|
| Transaction total: | $9.6 billion
|
| Price per share: | $25.25
|
| Announcement date: | June 26
|
| Expected closing: | Fourth quarter of 2007
|
| Stock price for target: | NYSE: HUN: $18.90 on June 25
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