South African energy group, Sasol on Friday, said that LyondellBasell Industries had agreed to acquire 50% of the company’s US chemical unit, helping it to cut ballooning debt load. According to Sasol, it will raise $2 billion from the deal which includes setting up a 50/50 joint venture to manage the chemical plant at Lake Charles, Louisiana. Sasol said it would retain full ownership of the original ethane cracker and the US performance chemicals division, while LyondellBasell will operate the new JV firm.
Both companies expect to close the transaction by the end of this year, and it remains subject to shareholders’ approval. Sasol’s Lake Charles Chemical Project (LCCP) has an estimated value of $3.9 billion. It generated a loss of $2.3 billion in the fiscal year ended June 30. The company has been battling lower oil and chemicals prices as well as an $11.35-billion debt. Sasol CFO Paul Victor said the company’s balance sheet had improved. However, its shares have been fluctuating.
