US Clears LyondellBasell’s A. Schulman Buy
Petrochemicals giant LyondellBasell has received the go-ahead from the US Federal Trade Commission (FTC) to acquire A. Schulman, a manufacturer of high-performance plastic compounds, composites and powders, for $2.25 billion.
The deal is scheduled to close in the second half of this year, subject to approval by Schulman’s shareholders and the other required regulatory clearances and approvals.
The Texas-managed chemicals and plastics producer said the FTC has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, one of the prerequisites for the transaction to go ahead.
LyondellBasell announced plans to buy A. Schulman in mid-February, after signing a definitive agreement with the Ohio-based compounder.
The petrochemicals group, which is officially headquartered in the Netherlands, said the acquisition will build on its existing platform and create what it called “a premier compounding business with broad geographic reach, leading technologies and a diverse product portfolio.”
LyondellBasell’s largest purchase since emerging from bankruptcy in 2010 will add 54 manufacturing sites and 5,100 employees to its existing 18 sites and 1,500 workers currently engaged compounding.
With the integration of the new asset, Lyondell-Basell’s Advanced Polymer Solutions compounding business will double and its annual revenue increase to $4.6 billion.
