Basell (NL-2132 MS Hoofddorp; www.basell.com), Europe´s largest polyolefins player with 2.5m t/y of annual capacity and world market leader in PP with 7.8m t/y, may be on the sale block soon. The company´s 50:50 joint venture partners BASF (D-67056 Ludwigshafen; www.basf.com) and Shell (GB-London; www.shell.com/chemicals) are “reviewing strategic alternatives,” which could include a sale of their stakes or an ipo. Investment bankers Credit Suisse First Boston (www.csfb.com) and Lazard (www.lazard.com) have been retained as advisors. During the review phase, the two partners that founded Basell in late 2000 said they would continue to provide strategic and financial support.

Merging the PE and PP activities was a good move, but with Basell “now established as a global industry leader,” and it is time to assess the next step, said BASF managing board member, John Feldmann. BASF has reoriented itself towards styrenics, performance polymers, polyurethanes and theirvalue chains, and Shell is said to have been ready to exit for some time.

Basell chairman Volker Trautz said the divestment plans will not distract the company from meeting customers´ needs. “A great deal of positive progress has taken place in Basell, even though the market has proven to be more volatile and less robust than expected,” he remarked, and added that ”other improvements are on the way.” The jv´s as yet undisclosed financial results for H1 2004 are reported to be strongly improved. In 2003, Basell reported turnover of EUR 5.7m and an operating profit of EUR 106m after a 2002 loss of EUR 244m.