Occidental Joins Ethylene Venture

Occidental Petroleum Corp. said it will add its petrochemical business to a joint venture between Lyondell Petrochemical Co. and Millennium Chemicals Inc. The agreement creates one of the world’s largest makers of ethylene, the chemical most widely used to make plastics, and derivatives used in products ranging from antifreeze to electronic equipment. The combined company, called Equistar, will have assets valued at $7 billion and about $6 billion in annual revenue. For Los Angeles-based Occidental, the move completes a $4.5-billion restructuring designed to focus the company on its oil, natural gas and specialty chemical businesses. Occidental will keep its specialty chemicals business, with about $3 billion in annual revenue, and expand its polyvinyl chloride, or PVC, operations. Occidental will receive $425 million from Equistar under the agreement, and Millennium will receive $75 million. Occidental and Millennium each will own 29.5% of the joint venture, and Lyondell will own 41%. On the NYSE, Occidental shares rose $1 to close at $29.25; Lyondell rose $1.69 to close at $29.88; and Millennium gained $1.06 to close at $31.