LyondellBasell in Talks to Sell Some European Assets to AEQUITA

Chemicals maker LyondellBasell (LYB) said on June 5 that it is in exclusive talks with Munich-based investment firm AEQUITA to sell some of its European olefins and polyolefins assets.

LyondellBasell conducted a strategic review of its European business last year to cope with macroeconomic fluctuations.

Chemical companies have been struggling due to weak demand and rising raw material costs, especially in Europe. The strict regulatory environment has also forced companies to reevaluate their business models in the region.

"At least in today's cyclically down market, separating these unprofitable and cash-negative assets is always a good option," said Kevin McCarthy, an analyst at Vertical Research Partners.

"While this transaction will be cash-loss for Lyondell, it does provide a clean exit that allows management to advance its corporate strategy while also mitigating cash bleed from operations."

The company said the land to be sold is located in France, Germany, the United Kingdom and Spain and is part of a previously announced strategic review.

LyondellBasell's shares rose slightly in early trading following the announcement.

The two companies signed an agreement, a so-called "put option agreement," under which AEQUITA will enter into a purchase agreement if LyondellBasell exercises its put option after the conclusion of certain union consultation processes.

"We view this transaction as a net positive for LYB as it simplifies LYB's global portfolio, frees up capital, and exits a business with less future EBITDA for pension and environmental liabilities," Wells Fargo analysts said.

The proposed transaction is expected to close in the first half of 2026.