Basell to acquire Huntsman

Under the terms of the agreement, Basell will acquire all of the outstanding common stock of Huntsman for $25.25 per share in cash. The transaction was unanimously approved by the Boards of Directors of both Basell and Huntsman. Huntsman's Board of Directors approved the transaction agreement at the recommendation of a Transaction Committee comprised of Huntsman independent directors. The transaction is subject to customary closing conditions, including regulatory approval in the U.S. and in Europe, as well as the approval of Huntsman shareholders. Entities controlled by MatlinPatterson and the Huntsman family, who collectively own 57% of Huntsman's common stock, have agreed to approve the transaction. Closing is expected in the fourth quarter of 2007. The combined company will have an extensive geographic footprint, with operations on all continents of the world, and will be well positioned in fast-growing markets such as China, India, Eastern Europe and Latin America. In 2006, Basell and Huntsman had combined revenues of more than $26 billion and employed approximately 20,900 people. Volker Trautz, CEO of Basell, said: “Basell's industry-leading polyolefins businesses and Huntsman's businesses will benefit from the expertise both companies have demonstrated in technology, innovation and customer service. Together we will be able to achieve even more." Commenting on the announcement, Len Blavatnik, Chairman and founder of U.S.-based Access Industries, owner of Basell, said: “This transaction enhances our position as a global industrial group with long-term strategic assets in the chemicals industry." Mr. Blavatnik added: “Basell's management team has done an excellent job in growing and enhancing the company over the last two years, putting it in a position to make this acquisition. We look forward to further growth and profitability in this industry." Jon M. Huntsman, founder and Chairman of Huntsman Corporation, said: “This transaction opens a new chapter in the proud history of Huntsman and for the thousands of people who work in our facilities around the world. I am confident Basell is the right owner for the company going forward. The proceeds of this transaction will allow our family to focus more effectively on the elimination of human suffering and on finding cures for cancer." Peter R. Huntsman, President and CEO of Huntsman, said: “This transaction represents outstanding value for Huntsman's shareholders. The merger of Basell and Huntsman creates one of the largest chemical companies in the world. I am confident that this combination will allow us to even more effectively pursue our underlying business strategies and continue to provide rewarding opportunities for our associates."