UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 - ------------------------------------------------------------------------------ SCHEDULE 13G Under the Securities Exchange Act of 1934 LYONDELL CHEMICAL COMPANY ------------------------- (Name of Issuer) Common Stock, par value $1.00 per share --------------------------------------- (Title of Class of Securities) 552078107 --------- (CUSIP Number) May 9, 2007 ----------- (Date of Event which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: |X| Rule 13d-1(b) |_| Rule 13d-1(c) |_| Rule 13d-1(d) * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Continued on following pages - ------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). MERRILL LYNCH & CO., INC. - ------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- 3. SEC Use Only - ------------------------------------------------------------------------------- 4. Citizenship or Place of Organization Delaware - ------------------------------------------------------------------------------- Number of 5. Sole Voting Power None Shares Beneficially --------------------------------------------------------------- Owned by Each Reporting 6. Shared Voting Power 7,934,753(*) Person With --------------------------------------------------------------- 7. Sole Dispositive Power None --------------------------------------------------------------- 8. Shared Dispositive Power 7,934,753(*) - ------------------------------------------------------------------------------- 9. Aggregate Amount Beneficially Owned by Each Reporting Person 7,934,753(*) - ------------------------------------------------------------------------------- 10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) |_| - ------------------------------------------------------------------------------- 11. Percent of Class Represented by Amount in Row (9) 3.138%(*) - ------------------------------------------------------------------------------- 12. Type of Reporting Person: HC, CO - ------------------------------------------------------------------------------- (*)Merrill Lynch International or an affiliate may acquire up to an additional 14,000,000 shares or approximately 5.6% of the class in connection with the transactions described below in Item 4(a) of this report. - ------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED - ------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- 3. SEC Use Only - ------------------------------------------------------------------------------- 4. Citizenship or Place of Organization Delaware - ------------------------------------------------------------------------------- Number of 5. Sole Voting Power 7,818,008 Shares Beneficially --------------------------------------------------------------- Owned by Each Reporting 6. Shared Voting Power None Person With --------------------------------------------------------------- 7. Sole Dispositive Power 7,818,008 --------------------------------------------------------------- 8. Shared Dispositive Power None - ------------------------------------------------------------------------------- 9. Aggregate Amount Beneficially Owned by Each Reporting Person 7,818,008 - ------------------------------------------------------------------------------- 10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) |_| - ------------------------------------------------------------------------------- 11. Percent of Class Represented by Amount in Row (9) 3.091%(*) - ------------------------------------------------------------------------------- 12. Type of Reporting Person: BD, IA, CO - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). MERRILL LYNCH INTERNATIONAL - ------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- 3. SEC Use Only - ------------------------------------------------------------------------------- 4. Citizenship or Place of Organization England and Wales - ------------------------------------------------------------------------------- Number of 5. Sole Voting Power 87,933(*) Shares Beneficially --------------------------------------------------------------- Owned by Each Reporting 6. Shared Voting Power None Person With --------------------------------------------------------------- 7. Sole Dispositive Power 87,933(*) --------------------------------------------------------------- 8. Shared Dispositive Power None - ------------------------------------------------------------------------------- 9. Aggregate Amount Beneficially Owned by Each Reporting Person 87,933(*) - ------------------------------------------------------------------------------- 10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) |_| - ------------------------------------------------------------------------------- 11. Percent of Class Represented by Amount in Row (9) 0.03%(*) - ------------------------------------------------------------------------------- 12. Type of Reporting Person: BD, CO - ------------------------------------------------------------------------------- (*)Merrill Lynch International or an affiliate may acquire additional shares in connection with the transactions described below in Item 4(a) of this report. - ------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). MERRILL LYNCH BANK & TRUST CO., FSB - ------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- 3. SEC Use Only - ------------------------------------------------------------------------------- 4. Citizenship or Place of Organization Federal Savings Bank under US Federal law - ------------------------------------------------------------------------------- Number of 5. Sole Voting Power 3,007 Shares Beneficially --------------------------------------------------------------- Owned by Each Reporting 6. Shared Voting Power None Person With --------------------------------------------------------------- 7. Sole Dispositive Power 3,007 --------------------------------------------------------------- 8. Shared Dispositive Power None - ------------------------------------------------------------------------------- 9. Aggregate Amount Beneficially Owned by Each Reporting Person 3,007 - ------------------------------------------------------------------------------- 10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) |_| - ------------------------------------------------------------------------------- 11. Percent of Class Represented by Amount in Row (9) 0.00% - ------------------------------------------------------------------------------- 12. Type of Reporting Person: BK - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). MERRILL LYNCH FINANCIAL MARKETS, INC. - ------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- 3. SEC Use Only - ------------------------------------------------------------------------------- 4. Citizenship or Place of Organization Delaware - ------------------------------------------------------------------------------- Number of 5. Sole Voting Power 25,805 Shares Beneficially --------------------------------------------------------------- Owned by Each Reporting 6. Shared Voting Power None Person With --------------------------------------------------------------- 7. Sole Dispositive Power 25,805 --------------------------------------------------------------- 8. Shared Dispositive Power None - ------------------------------------------------------------------------------- 9. Aggregate Amount Beneficially Owned by Each Reporting Person 25,805 - ------------------------------------------------------------------------------- 10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) |_| - ------------------------------------------------------------------------------- 11. Percent of Class Represented by Amount in Row (9) 0.01% - ------------------------------------------------------------------------------- 12. Type of Reporting Person: BD, CO - ------------------------------------------------------------------------------- Item 1(a). Name of Issuer: Lyondell Chemical Company (the "Issuer) Item 1(b). Address of Issuer's Principal Executive Offices: 1221 McKinney Street, Suite 700, Houston, Texas 77010 Item 2(a). Name of Persons Filing: Merrill Lynch & Co., Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated Merrill Lynch International Merrill Lynch Bank & Trust Co., FSB Merrill Lynch Financial Markets, Inc. Item 2(b). Address of Principal Business Office or, if None, Residence: