U.S. News

Occidental Petroleum Plans to Sell Stake in Lyondell Chemical

Oil and gas producer Occidental Petroleum said Friday it plans to sell its 8.3% stake in Lyondell Chemical.

The company said it sold roughly 7 million of its 21 million shares in Lyondell to a single buyer in a private transaction for more than $32 per share.

It also entered a total return swap agreement on the remaining 14 million shares, giving Occidental the opportunity to realize a similar market price on future sales of the shares.

If the remaining 14 million shares are sold on the open market and including receipts from the completed sale, Occidental sees proceeds of about $520 million from the sale and a net gain of about $200 million.