LyondellBasell to Buy A. Schulman for $2.25 Billion

   By Allison Prang 
 

LyondellBasell Industries NV (LYB) plans to buy A. Schulman Inc. (SHLM) for $2.25 billion in a deal it says will help it expand into other businesses.

The London-based plastics and refining firm is offering to buy A. Schulman for $42 a share. Shares of A. Schulman, a plastic compounds supply company based in Ohio, closed at $38.65 Wednesday and rose 8.7% premarket Thursday.

LyondellBasell Chief Executive Bob Patel said in prepared remarks that the deal will help the company serve other sectors like building and construction and consumer products.

"This combination will allow us to provide our customers with a wider range of innovative solutions while adding the ability to serve high-growth end markets beyond the automotive sector," he said.

In the past year, revenue from the companies combined was $4.6 billion. Both companies' boards have approved the deal and it is expected to close in the second half of this year, they said. It still requires approval from A. Schulman shareholders.

Shares of LyondellBasell were flat premarket but are up 20% in the past year.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

February 15, 2018 08:23 ET (13:23 GMT)

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