LyondellBasell sells select European assets to AEQUITA, forming Velogy, to streamline portfolio, improve returns, and focus on strategic growth areas.
LyondellBasell has confirmed the successful completion of the divestment of selected European olefins and polyolefins assets, along with the associated commercial operations and corporate support functions, to AEQUITA. This development marks a significant milestone in the company’s broader strategic evaluation of its European portfolio. The transaction was finalized after fulfilling all required regulatory approvals, as well as completing employee information and consultation procedures in line with applicable labor regulations.
This divestment aligns closely with LyondellBasell’s long-term strategy to strengthen and refine its asset base by focusing on operations that offer sustainable competitive advantages and deliver higher returns over time. By streamlining its portfolio, the company aims to reinforce financial flexibility and ensure a more disciplined and targeted approach to capital allocation. This strategic shift is designed to position the company more effectively in an increasingly competitive and evolving global chemicals market.
The assets included in the transaction are located across key European industrial hubs, specifically in Berre in France, Münchsmünster in Germany, Carrington in the United Kingdom, and Tarragona in Spain. Despite the sale, LyondellBasell will retain and continue operating its Advanced Polymer Solutions (APS) business in Tarragona, underlining its continued commitment to maintaining a presence in strategically important segments within the European market.
Peter Vanacker, Chief Executive Officer of LyondellBasell, described the completion of the sale as a major step forward in the company’s transformation journey. He emphasized that the transaction allows the company to sharpen its portfolio focus and better direct investments toward high-value opportunities that support long-term growth and value creation. According to him, this move enhances the company’s ability to prioritize projects and businesses that generate stronger financial performance and align with its strategic objectives.
Vanacker also reiterated that Europe remains a crucial market for the company. LyondellBasell intends to continue investing in areas where it sees clear value creation potential. This includes strengthening its leadership in specialty polymers, expanding its Circular and Low Carbon Solutions segment, and advancing innovation and technology capabilities. He also acknowledged the contributions of employees affected by the transition, expressing appreciation for their professionalism and dedication during the process, and extended best wishes for their future under new ownership.
Following the completion of the transaction, the divested operations will operate independently under the new name “Velogy.” This rebranding signifies the beginning of a new phase for the business as it transitions into a standalone entity under AEQUITA’s ownership.
Dr.-Ing. Axel Geuer, Founder and Chairman of AEQUITA, highlighted that the acquisition represents a key step in building a robust and competitive European polymers platform. He noted that the sector presents strong fundamentals and promising long-term growth opportunities. Geuer also expressed appreciation for the cooperative engagement with LyondellBasell throughout the transaction process and conveyed optimism about working with Velogy’s workforce to further strengthen its service offerings to customers and partners.
Despite the divestment, LyondellBasell remains committed to ensuring the safe and reliable operation of its remaining assets. The company also reaffirmed its dedication to maintaining high standards in serving its customers and partners, ensuring continuity and quality across its ongoing operations.
