Mumbai: Dutch chemicals and plastics maker Basell, which lost out to Apollo Management's Hexion Specialty Chemicals in a bid for Huntsman Corp, is acquiring Lyondell Chemical Co. for about $12.14 billion.

Privately held Basell AF SCA, which is owned by US industrialist Len Blavatnik's Access Industries, will pay Lyondell stockholders $48 per common share.

The all-cash deal, which values Lyondell at $12.14 billion based on a 19.6 per cent premium to its share price of $40.12 as of July 16, has a total enterprise value of about $19 billion, including the assumption of debt, the companies said in a joint statement.

The deal is expected to close within the next several months.

The transaction, which has been unanimously approved by the boards of directors of both Basell and Lyondell, would give Basell access to Lyondell's commodity assets and refining capacity.

Basell has been seeking acquisitions in the chemicals sector for some time now. While it lost out to Hexion in its bid for Huntsman, Basell had also earlier lost out to Saudi-based SABIC in the auction process for General Electric Co.'s GE Plastics.

Houston-based Lyondell is one of the largest chemical makers in North America and a major producer of ethylene and propylene oxide, which are used to make plastics, varnishes and other products. Lyondell is also a refiner of heavy, high-sulfur crude oil and a producer of fuel products.

Basell and Lyondell together would have had combined 2006 revenues of about $34 billion and 15,000 employees around the world, according to the joint statement.

According to the companies, Lyondell's three business segments, such as ethylene, co-products and derivatives, propylene oxide and related products, and refining, will complement and significantly strengthen Basell's polyolefins business following the deal completion that will form one of the sector's largest companies.

Volker Trautz, chief executive of Basell, stated Lyondell's competitively positioned assets, access to raw material and refining capacity are excellent complements to Basell's diversified portfolio.

Basell is Europe's largest producer of polyethylene, the key ingredients that go into plastics of all kinds. The company provides polyolefin technology, production and marketing, and is the largest producer of polypropylene and advanced polyolefin products. The company also supplies polyethylene and catalysts, and licenses its polymer technology. Basell, together with its joint ventures, has manufacturing facilities in 19 countries and sells products in more than 120 countries. Basell, which was bought in 2005 by private investment firm Access Industries, was formed in 2000 from the combination of the polyolefin businesses of Royal Dutch Shell Group and BASF.