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LyondellBasell Gets Approval for the A. Schulman Acquisition


May. 30 2018, Updated 11:40 a.m. ET

One step closer to the A. Schulman acquisition

On May 22, LyondellBasell got approval for the A. Schulman (SHLM) acquisition from the Chinese State Administration of Market Regulation. LyondellBasell already received approval from antitrust regulators in the United States, Brazil, Serbia, and Turkey. The acquisition is expected to be completed in the second half of 2018. However, the deal still has to be approved by A. Schulman shareholders.

LyondellBasell entered into a definitive agreement to acquire A. Schulman in February and agreed to pay $2.25 billion. The acquisition is expected to help LyondellBasell build an advanced polymer solutions business. The acquisition will also reach vast geographical areas.

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LyondellBasell’s stock performance

There were rumors that LyondellBasell is looking to acquire Braskem, which Braskem denied. The stock fell 2.1% and closed at $113.76. As a result, the stock traded 3.6% above the 100-day moving average price of $110.18, which indicates the upward trend in the stock. On a year-to-date basis, the stock is positive again with a gain of 3.2%. Westlake Chemical (WLK) and Eastman Chemical (EMN) have gained 11.0% and 14.7%, respectively. LyondellBasell’s 14-day relative strength index of 57 indicates that the stock isn’t overbought or oversold.

Investors could hold LyondellBasell indirectly by investing in the Vanguard Materials ETF (VAW), which declined 4.1% for the week. VAW has invested 4.2% of its portfolio in LyondellBasell as of May 25.


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