The purchase of Millennium Chemical will create the US's third-largest chemical company

The purchase of Millennium Chemical will create the US's third-largest chemical company

Lyondell is to buy Millennium Chemical, the world number two in titanium dioxide, in a deal which will create the US’s third-largest chemical company. The company formed after the $1bn (E800m) stock deal will be named Lyondell Chemical and be headquartered in Houston. It will have sales of $11bn (E9bn).

It will be a major force in PU intermediate propylene oxide and white pigment titanium dioxide, as well as a leading polyolefins maker through the 2.6 million tpa Equistar joint venture. The deal will simplify ownership of Equistar, which until now has been owned 70.5% by Lyondell and 29.5% by Millennium.

Although the bulk of the assets are located in North America, the new company will also own Millennium’s Stallingborough titanium dioxide plant on Humberside. Lyondell’s Dan Smith will remain as chief executive of the enlarged group, which expects to save at least $50m (E41m) as a result of the merger.