Two global chemical and plastics firms, LyondellBasell and Sasol, announced Friday the creation of a 50/50 joint venture to acquire a 50% interest in several of Sasol’s operations in Louisiana.
In effect, Sasol sold a 50% interest in those operations for $2 billion.
LyondellBasell, a Netherlands-based giant with a major presence in Houston, was advised by Kirkland & Ellis. South African Sasol was advised by Latham & Watkins.
The Louisiana assets involved include Sasol’s 1.5MM ton ethane cracker, 0.9 MM ton low and linear-low density polyethylene plants. LyondellBasell will take over the operations on behalf of the joint venture following the close of the transaction.
The Kirkland team was led from Houston by transactional partners Bill Benitez, Ahmed Sidik and Chad Smith; and included environmental transactions partner Alex Farmer; technology and intellectual property Chicago-based transactions partner Matt Lovell; Houston tax partner Mark Dundon; executive compensation partner Stephen Jacobson; real estate partner Josh Faulkner; and project finance partner Brian Greene in Washington, D.C.
Gordon Dyal & Co. and J.P. Morgan are serving as financial advisors for LyondellBasell.
Jeff Kaplan is CLO at LyondellBasell. Andrew Gratz is Associate GC.
The Latham & Watkins team also had a heavy Houston component. The team was led by Houston partners Ryan Maierson and Lauren Anderson, with Houston associates Thomas Verity, Samantha Seley, Denny Lee, Caroline Ellerbe, Sarah Dunn and Danielle Kinchen. The finance team was led by Los Angeles/New York partner Jeffrey Greenberg, while the commercial team was led by Houston partner Jonathan Castelan, with Houston associates Thomas Hillebrand, Corey Allen, Sam Bentley, and Cody Smith. Advice was also provide on antitrust matters by Washington, D.C. partner Jason Cruise and Frankfurt partner Sebastian Max Hauser, with Washington, D.C. associates Lindsey Champlin and Brian O’Connell, and Frankfurt associate Anne Haas; on tax matters by Houston partner Tim Fenn, with Houston associate Michael Rowe; on benefits and compensation matters by Washington, D.C. partner Adam Kestenbaum, with Washington, D.C. associate Kirk Porter; and on licensing matters by New York partner Steven Betensky.
Bank of America is advising Sasol on finance.
Jennifer Gallagher, Sasol’s Houston-based U.S. in-house counsel, was involved, along with an in-house team in Johannesburg that included Jens Straatman, Costa Mutzuris, Siphokazi Matshikiza and Yvette Van der Merwe.
Both companies will provide feedstocks to the joint venture and both will offtake pro-rata shares of cracker and polyethylene (PE) products at cost.
Sasol will retain full ownership and operational control of its Lake Charles Research and Development complex, Lake Charles East Plant ethane cracker and U.S. Performance Chemicals Business assets in Lake Charles.