LYB in talks to sell European olefins, polyolefins assets

Global chemical company LyondellBasell (LYB), Rotterdam, Netherlands, says it has entered into an agreement and exclusive negotiations with Germany-based industrial group Aequita for the sale of select olefins and polyolefins assets and its associated business in Europe for an undisclosed amount.

LYB says the sites to be sold have been part of its previously announced European strategic assessment and are located in Berre, France; Münchsmünster, Germany; Carrington, United Kingdom; and Tarragona, Spain.

RELATED: LYB publishes 2024 sustainability report

“This contemplated transaction is a significant step in LYB’s transformation to grow and upgrade our core,” LYB CEO Peter Vanacker says. “We are committed to operate our assets safely and reliably throughout this process and will continue to support our customers, employees and other key stakeholders. Europe remains a core market for LYB and one we will continue to participate in following this transaction with more of a focus on value creation through establishing profitable leadership in circular and renewable solutions.”

Assets and business set to be acquired by Aequita include integrated and nonintegrated sites within LYB’s European olefins and polyolefins business, as well as supporting central functions based at the company’s Rotterdam headquarters and various locations. LYB says the sites together represent a scaled olefins and polyolefins platform strategically located in proximity to a longstanding customer base and with access and connectivity to key infrastructure.

“The acquisition of these assets from LYB marks another important step in expanding our industrial footprint,” says Christoph Himmel, managing partner at Aequita. “Each site brings a strong operational foundation and a highly experienced, committed employee base. We are confident in our ability to accelerate their development under Aequita’s ownership approach. We look forward to welcoming the teams into our group and to working collaboratively with all stakeholders to ensure a smooth transition and establish a strong platform for long-term success.”

The firms’ agreement is a put option deed under which Aequita has committed to enter into an agreed form purchase agreement if LYB exercises its put option, after conclusion of certain works council consultation processes.

LYB says it expects the transaction to close in the first half of 2026, subject to the completion of the information and consultation processes with the relevant employee representative bodies in accordance with applicable laws, as well as regulatory and other customary closing conditions. Citi and J.P. Morgan Securities LLC acted as financial advisors and Linklaters LLP acted as legal counsel to LYB.

A circular, low-carbon focus

In its 2024 sustainability report released earlier this spring, LYB claimed “significant progress” in circular and low-carbon solutions, among other highlights, including the use of more recycled and renewable-based polymers into its product portfolio.

Per the report, last year, the company said it increased volumes of recycled and renewable-based polymers by 65 percent to 203,000 metric tons while moving closer to its 2030 goal of producing and marketing 2 million metric tons per year and capturing incremental earnings before interest, taxes, depreciation and amortization (EBITDA) of more than $1 billion through its Circular and Low Carbon Solutions (CLCS) business, which the company established in 2022 to capitalize on the growing demand for circular plastics.

To grow that portion of its business, LYB has made a number of upstream investments to secure feedstock, enhance its recycling capabilities and also has worked to develop and scale up technologies for its portfolio of Circulen polymers.