Lyondell Petrochemicals Buys Arco Chemical

Atlantic Richfield this week announced that they have agreed to sell its Arco Chemical Division to Lyondell petrochemical for $5.6 billion.

Arco Chemical is the world's largest maker of propylene oxide, a component of coolants, solvents, and resins. It also makes styrene monomer, which is used in plastic, and the gasoline additive MTBE.

Houston-based Lyondell will pay $57.75 per share for Arco shares, which is 82% owned by Atlantic Richfield.

Lyondell is a leading maker of petrochemicals and polymers, which are used to make products such as trash bags, sports equipment and packaging. It also makes refined petroleum products such as gasoline, heating oil and motor oil through a joint venture with Citgo Petroleum.

The purchase in effect reunites Lyondell and Arco. Lyondell was formed in 1985 and was a subsidiary of Atlantic Richfield until 1989, when its shares were sold to the public.