Published by Global Banking & Finance Review®
Posted on June 5, 2025
2 min readLast updated: January 23, 2026
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LyondellBasell is in talks with AEQUITA to sell European olefin and polyolefin assets, aiming to streamline operations and mitigate financial losses.
(Reuters) -Chemical maker LyondellBasell said on Thursday it is in exclusive talks with Munich-based investment firm AEQUITA for the sale of certain olefin and polyolefin assets in Europe.
LyondellBasell launched a strategic review of its European operations last year in a bid to navigate macroeconomic volatility.
Chemical companies have been struggling due to weaker demand and rising raw material costs, especially in Europe. A rigorous regulatory landscape is also compelling businesses to reassess their approach in the region.
"There was never going to be a great option to separate these unprofitable and cash negative assets, at least in today's cyclically depressed market," Vertical Research Partners analyst Kevin McCarthy said.
"While the deal at hand will be cash negative to Lyondell, it does provide for a clean exit that will allow management to advance its corporate strategy, while also mitigating cash bleed on an operating basis."
The sites to be sold, which are located in France, Germany, the UK and Spain, were part of previously announced strategic assessments, the company said.
LyondellBasell's shares rose marginally in morning trading following the announcement.
The companies have signed an agreement, a so-called 'put option deed', under which AEQUITA will enter a form purchase agreement if LyondellBasell exercises its put option after the conclusion of certain works council consultation processes.
"We see the deal as a net positive for LYB, as it streamlines LYB's global portfolio, frees up capital, and exits lower EBITDA generating businesses with future pension and environmental liabilities," Wells Fargo analysts said.
The proposed deal is expected to close in the first half of 2026.
(Reporting by Mrinalika Roy and Pooja Menon in Bengaluru; Editing by Sonia Cheema and Shreya Biswas)
LyondellBasell is in talks to sell certain olefin and polyolefin assets located in Europe.
The sale is part of a strategic review to navigate macroeconomic volatility and to separate unprofitable and cash negative assets.
The proposed deal is expected to close in the first half of 2026.
LyondellBasell's shares rose marginally in morning trading following the announcement of the asset sale talks.
The companies have signed a 'put option deed', under which AEQUITA will enter a purchase agreement if LyondellBasell exercises its put option after certain conditions are met.
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