Abstract
LyondellBasell Industries has agreed to pay $2 billion for a 50% stake in an ethylene cracker and two polyethylene plants that Sasol recently built in Lake Charles, Louisiana. The transaction may finally conclude the troubled saga of Sasol’s Lake Charles project, which had complications and cost overruns that led to a shake-up at the South African company’s headquarters. In addition to the cracker and polyethylene plants that will soon be half-owned by Lyondell, the new complex includes ethylene oxide, ethylene glycol, ethoxylation, and Ziegler and Guerbet alcohol plants. When the project was approved in 2017, Sasol expected it to cost $8.9 billion. The firm ended up spending $12.5 billion. The debacle prompted Sasol’s co-CEOs to step down last October. In March, Sasol said it was looking to divest $6 billion worth of assets worldwide, partly by taking on a partner in the complex. The transaction is expected to close by
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