LyondellBasell announces decision to acquire Mepol Group

Rhea-AI Summary

LyondellBasell has announced a definitive agreement to acquire Mepol Group, a manufacturer of recycled technical compounds based in Italy and Poland. The acquisition aims to enhance LyondellBasell's sustainable product portfolio, particularly in CirculenRecover solutions. The transaction aligns with LyondellBasell's commitment to advancing the circular economy and addressing plastic waste challenges. Regulatory approval and other customary conditions are required before closing, while Mepol will continue to operate independently during this period. The deal is seen as a strategic move to leverage Mepol's expertise in eco-sustainable products.

Positive

• Strategic acquisition of Mepol Group enhances LyondellBasell's sustainable product capabilities.
• Strengthens focus on circular economy and eco-sustainable solutions.
• LyondellBasell's scale and resources expected to improve market positioning.

Negative

• Transaction pending regulatory approval, which may delay integration.
• Potential integration challenges and costs associated with merging operations.

Facilities in Poland and Italy will produce recycled and polymer compounds for diverse markets

ROTTERDAM, Netherlands and FERRARA, Italy, March 13, 2023 /PRNewswire/ -- LyondellBasell (NYSE: LYB) and Mepol Group today announced they have entered into a definitive agreement for LyondellBasell to acquire Mepol Group, a manufacturer of recycled, high-performing technical compounds located in Italy and Poland, consisting of Mepol S.r.l. and its subsidiaries Polar S.r.l. and Industrial Technology Investments Poland Sp.z.o.o.

"This acquisition demonstrates LyondellBasell's commitment to move the circular economy forward," said Torkel Rhenman, executive vice president of Advanced Polymer Solutions. "With Mepol Group's expertise in sustainable compounds and LyondellBasell's scale, we will enhance our CirculenRecover and other sustainable solutions for our customers."

Mirco Melato, CEO of Mepol commented, "We are delighted to join forces with LyondellBasell, an industry leader we have admired for many years. LyondellBasell shares our commitment towards sustainability and with its scale and resources, the combined business will be better positioned to address customer needs."

LyondellBasell continues to pioneer circular and low carbon solutions for its customers. The company began engineering work for a new advanced recycling plant at its Wesseling, Germany site in November last year. LyondellBasell has existing mechanical recycling facilities in the Netherlands and Belgium and is developing new plastic waste sorting and recycling plants in Houston, Germany, China and India, which was announced during the fourth quarter of 2022.

The transaction closing is subject to regulatory approval and other customary closing conditions. During this period, Mepol Group will continue to operate on a standalone basis. Jones Day and Wardynski & Partners served as LyondellBasell's legal advisor on the transaction. Special Affairs S.r.l. served as Mepol Group's financial advisor and Gitti & Partners is acting as its legal advisor.

About LyondellBasell
As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company's products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and greenhouse gas emissions reduction. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.

About Mepol Group
With thirty years of experience, Mepol integrates sustainability across its industrial strategy, in the planning and control of its plastics recycling activities and in the production of thermoplastic compounds formulated making use of recovered materials. Corporate social responsibility has always been a strategic asset for Mepol which, owing to a continuous research and development activity, has led to its focus on eco-sustainable products for various applications, from furniture to automotive, to the electrical and electronic sectors.

The group's mission is not limited to accompanying the customer in its the transition path to recycled products, but reaches out to providing waste management and packaging recovery services in support of regulatory requirements and extended producer responsibility.

For the second consecutive year, Mepol received recognition for the top 100 companies in Italy that stood out for the ESG score: the Sustainability Award promoted by KON, Credit Suisse and Forbes.

Cautionary Note Regarding Forward-looking Statements for LyondellBasell
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, receipt of required regulatory approvals; our ability to successfully integrate and operate the acquired business described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the Company and its affiliates are located. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2021, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.

 

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SOURCE LyondellBasell Industries

FAQ

What is the purpose of LyondellBasell's acquisition of Mepol Group?

The acquisition aims to enhance LyondellBasell's sustainable product offerings and strengthen its commitment to the circular economy.

When was the acquisition of Mepol Group by LyondellBasell announced?

The acquisition was announced on March 13, 2023.

What are the expected benefits of acquiring Mepol Group for LyondellBasell?

Expected benefits include enhanced sustainable solutions and a better position in the market for recycled compounds.

What regulatory approvals are needed for the LyondellBasell and Mepol Group deal?

The transaction requires regulatory approval and other customary closing conditions before it can be finalized.