Standard & Poor's Ratings Services said Tuesday it has placed the ratings for chemicals companies Basell AF SCA and Huntsman Corp. on negative CreditWatch, signaling a possible downgrade, after Basell said it would buy Huntsman.
The ratings on CreditWatch include the companies' "BB-" corporate credit ratings.
Earlier Tuesday, Luxembourg-based Basell, a division of billionaire investor Leonard Blavatnik's Access Industries, said it will acquire rival Huntsman Corp. in a cash deal worth $5.6 billion.
The $25.25 per share transaction, which is subject to shareholder and regulatory approval, has been approved by the boards of Huntsman and Basell. The deal also has the support of MatlinPatterson and the Huntsman family, who collectively own 57 percent of Huntsman's common stock. The acquisition is expected to close in the fourth quarter of 2007.
