Lyondell to sell unit for $1.05B |
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Published
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Mon, 26 Feb 2007 15:19
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HOUSTON (AP) - Chemical maker Lyondell Chemical Co. said Monday it agreed to sell its worldwide inorganic chemicals business to National Titanium Dioxide Co. Ltd. for $1.05 billion in cash plus the assumption of some liabilities.Including the assumption of liabilities, the deal is worth $1.2 billion. Net proceeds are expected to be $975 million.Lyondell said the deal will allow it to accelerate debt repayment.Lyondell's fourth-quarter earnings will include a $549 million charge related to the carrying value of goodwill associated with the business. As a result, Lyondell will post a loss of $321 million, or $1.29 per share in the fourth quarter, and have full-year net income of $186 million, or 72 cents per share.The deal is expected to occur in the first half of 2007. The business was acquired in Lyondell's 2004 purchase of Millennium Chemicals Inc. National Titanium, which produces titanium dioxide and exports it to more than 70 countries, is 66-percent owned by Saudi Arabia's National Industrialization Co.Lyondell shares rose $1.06, or 3.3 percent, to $33 during premarket electronic trading on the INET after closing on Friday at $31.94 on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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