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4-Traders Homepage  >  Equities  >  Nyse  >  LyondellBasell Industries NV    LYB   NL0009434992

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LyondellBasell Industries : Makes Takeover Approach to Braskem -- Update

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10/30/2017 | 06:43pm CET
By Dana Mattioli and Dana Cimilluca 

LyondellBasell Industries NV has made a takeover approach to Braskem SA, according to people familiar with the matter, eyeing a deal that could value the Brazilian petrochemical company at well over $10 billion.

The talks are at an early stage, the people said, and there is no guarantee there will be a deal.

Should there be one, it would be substantial: Braskem on Monday had a market value of about 37 billion Brazilian reais ($11.4 billion) and nearly as much debt. LyondellBasell had a market value of about $40 billion.

It would also be the second-largest Brazilian M&A deal, according to Dealogic. There has only been one double-digit-billion dollar deal in the country, according to the data provider's records: a $43 billion acquisition of oil-and-gas assets by Petrobras, announced in 2010.

LyondellBasell and Braskem operate in similar product lines but different geographies. Products include polyethylene, which is used in everyday items such as garbage bags and milk jugs. A deal would also give LyondellBasell access to faster-growing Latin American markets.

LyondellBasell is a Netherlands-based chemicals-and-polymer producer with a big presence in Houston. It was formed in 2007 when Dutch chemical company Basell International Holdings BV paid $12.7 billion to buy Houston-based Lyondell Chemical Co. The deal loaded the company with more than $20 billion in debt just before global commodity markets tumbled in the global financial crisis. A little more than a year after the merger, LyondellBasell filed for bankruptcy.

It emerged from bankruptcy in 2010 after eliminating about $5 billion in debt. Ukrainian-born billionaire Len Blavatnik's holding company, Access Industries, is a significant backer. Recently, executives of the chemical company have indicated they have a big M&A appetite.

Braskem is co-owned by state oil firm Petroleo Brasileiro SA, known as Petrobras, and construction firm Odebrecht SA, which owns just over half of the voting shares. The company, which says it is the biggest producer of polypropylene in the U.S., had sales of 55.5 billion reais last year.

The chemicals sector has been a hotbed of merger activity of late. On Monday, Akzo Nobel NV and U.S. rival Axalta Coating Systems Ltd. said they are in talks to join forces in a merger of equals that would create a multibillion-dollar coating and paints giant.

Earlier this year, Dow Chemical Co. and DuPont Co. completed their roughly $60 billion merger, which they expect to follow with a three-way breakup. Last year, industrial-gas giants Praxair Inc. and Germany's Linde AG agreed to combine.

Write to Dana Mattioli at [email protected] and Dana Cimilluca at [email protected]

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Financials ($)
Sales 2017 33 992 M
EBIT 2017 5 686 M
Net income 2017 4 006 M
Debt 2017 6 937 M
Yield 2017 3,42%
P/E ratio 2017 10,49
P/E ratio 2018 10,64
EV / Sales 2017 1,41x
EV / Sales 2018 1,42x
Capitalization 40 953 M
Chart LYONDELLBASELL INDUSTRIES
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LyondellBasell Industries  Technical Analysis Chart | LYB | NL0009434992 | 4-Traders
Technical analysis trends LYONDELLBASELL INDUSTRIES
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 24
Average target price 104 $
Spread / Average Target 0,13%
EPS Revisions
Managers
NameTitle
Bhavesh Vaghjibhai Patel Chief Executive Officer
Robert G. Gwin Chairman-Supervisory Board
Thomas Aebischer Chief Financial Officer & Executive Vice President
Massimo Covezzi Senior Vice President-Research & Development
Bruce A. Smith Member-Supervisory Board
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