NEWTOWN SQUARE, Pa., June 18 /PRNewswire/ -- ARCO Chemical Company
(NYSE: RCM) announced today that the boards of directors of ARCO Chemical and
Lyondell Petrochemical Company (NYSE: LYO) have approved an agreement under
which ARCO Chemical will be acquired by Lyondell Petrochemical. To effect the
transaction, Lyondell will make an all-cash tender offer of $57.75 per share
for all the outstanding shares of ARCO Chemical Company stock. Atlantic
Richfield (NYSE: ARC), which currently owns 82.2% of ARCO Chemical, will
tender all of its shares. Subject to customary conditions, the transaction
could close early in the third quarter.
"ARCO Chemical's board approved the agreement after concluding that it
provides fair value to all of ARCO Chemical's shareholders," said Anthony
Fernandes, board chairman.
"We believe that this agreement capitalizes on the strengths of two
premier chemical companies. The acquisition of ARCO Chemical's global
leadership positions in propylene oxide and downstream derivatives along with
advantaged technologies will enable Lyondell to diversify its earnings base
and product portfolio while providing a platform for continued domestic and
international growth," said Marvin O. Schlanger, President and Chief Executive
Officer of ARCO Chemical. "Serving the customers of the new company will
continue to be a top priority," Schlanger emphasized.
The previously announced secondary offering and share buyback
transactions, pursuant to which Atlantic Richfield would have reduced its
ownership in ARCO Chemical to 50%, have been terminated.
ARCO Chemical is a leading worldwide manufacturer and marketer of
propylene oxide and derivatives and other intermediate chemicals. Its
products are used in a wide range of consumer and industrial goods, including
automotive components, cushioning, paints and coatings, plastics, home
furnishings, engine coolants, and reformulated gasoline.
SOURCE ARCO Chemical Company
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CONTACT:
Sallie D. Anderson, Media Relations,
610-359-5773, or Sami Ahmad, Investor Relations, 610-359-3171,
both of ARCO Chemical
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