BUENOS AIRES: Petrochemical giant LyondellBasell said it is selling its Argentina subsidiary for $162 million in cash to a group led by state-owned YPF SA.
The Petroken Petroquimica Ensenada business that LyondellBasell is unloading is one of the largest polypropylene producers in Argentina with a 180-kiloton plant in the country.
LyondellBasell, which operates primarily out of Houston, said it will hand the business over by the end of the year to YPF and the other buyer, Grupo Inversor Petroquimica. The deal is valued at $145 million on a debt and cash free basis, but at $162 million in cash proceeds based on June 30 capital estimates.
“As part of our long-term growth strategy, we will continue to focus on regions and assets that will have the greatest impact on value-creation for our shareholders,” said Tim Roberts, LyondellBasell executive vice president of global olefins and polyolefins, in a prepared statement.
This is the second global deal for LyondellBasell this month after announcing it would buy an India-based polypropylene compounds manufacturer, SJS Plastiblends PVT, in a move to expand its footprint in the growing automotive market.
The chemical company is on a rapid growth trajectory, especially in the Houston area at its Channelview and Pasadena facilities, largely because of cheap natural gas feedstock.
