LyondellBasell in talks to sell some European assets to AEQUITA

June 5 (Reuters) - Chemical maker LyondellBasell LYB.N said on Thursday it is in exclusive talks with Munich-based investment firm AEQUITA for the sale of certain olefin and polyolefin assets in Europe.

LyondellBasell launched a strategic review of its European operations last year in a bid to navigate macroeconomic volatility.

Chemical companies have been struggling due to weaker demand and rising raw material costs, especially in Europe. A rigorous regulatory landscape is also compelling businesses to reassess their approach in the region.

"There was never going to be a great option to separate these unprofitable and cash negative assets, at least in today's cyclically depressed market," Vertical Research Partners analyst Kevin McCarthy said.

"While the deal at hand will be cash negative to Lyondell, it does provide for a clean exit that will allow management to advance its corporate strategy, while also mitigating cash bleed on an operating basis."

The sites to be sold, which are located in France, Germany, the UK and Spain, were part of previously announced strategic assessments, the company said.

LyondellBasell's shares rose marginally in morning trading following the announcement.

The companies have signed an agreement, a so-called 'put option deed', under which AEQUITA will enter a form purchase agreement if LyondellBasell exercises its put option after the conclusion of certain works council consultation processes.

"We see the deal as a net positive for LYB, as it streamlines LYB's global portfolio, frees up capital, and exits lower EBITDA generating businesses with future pension and environmental liabilities," Wells Fargo analysts said.

The proposed deal is expected to close in the first half of 2026.