Houston, Texas-Lyondell Chemical Co. completed its acquisition of Millennium Chemicals Inc. on 1 Dec. The transaction creates North America's third-largest-and globally the seventh largest-independent, public chemical company, said Lyondell, giving its consolidated 2003 revenue as $114 000 million. Lyondell said it now has "leading global positions in propylene oxide and derivatives, plus titanium dioxide (TiO2), as well as leading North American positions in ethylene, propylene, polyethylene, aromatics, acetic acid and vinyl acetate monomer."Lyondell has achieved the global depth and breadth necessary for long- term success in the global chemical industry," said Dan Smith, president and ceo of Lyondell, in a company statement. "Operationally, Equistar has been an integrated part of the Lyondell enterprise since its inception. But now, because we will report consolidated earnings for three wholly owned businesses, the true size of the Lyondell enterprise will be more apparent.Millennium stockholders are receiving 0.95 of a Lyondell share for every Millennium share they hold. Lyondell said that the equity value of the transaction is approximately $1600 million, plus some $1100 million of Millennium net debt.Lyondell now operates on five continents and employs about 10 000 people worldwide. Both Millennium and Equistar Chemicals are now wholly owned subsidiaries of Lyondell, but each will remain separate legal entities and keep their separate debt structures.Lyondell has also appointed two new directors to its board. Worley Clark Jr served as chairman of Millennium's board and was president and ceo of Nalco Chemical Co. from 1982 until his retirement in 1994. David Meachin served as a director of Millennium beginning October 1996, and has been chairman and chief executive of Cross Border Enterprises llc, a private merchant bank, since its formation in 1991."
