Petrochemical company INEOS has announced its intention to purchase the global Aromatics and Acetyls businesses of BP for a consideration of US$5bn
The company stated that US$4bn will be payable upon completion with the remaining US$1bn deferred until, at the latest, June 2021.
This acquisition will extend both the portfolio and the geographic reach of the business.
The Aromatics business is a global leader in purified terephthalic acid (PTA) and paraxylene (PX) technology with six sites and supplies the global polyester business which includes polyester fibre, film and PET packaging.
The Acetyls business with nine sites produces acetic acid and a range of derivatives supplying a wide range of downstream industries such as food, pharmaceuticals, paints, adhesives and packaging.
Jim Ratcliffe, founder and chairman of INEOS, said, “This acquisition is a logical development of our existing petrochemicals business extending our interest in acetyls and adding a world leading aromatics business supporting the global polyester industry."
Bernard Looney, BP CEO, said, “This is another significant step as we steadily work to reinvent BP. These businesses are leaders in their sectors, with world-class technologies, plants and people. In recent years they have improved performance to produce highly competitive returns and now have the potential for growth and expansion into the circular economy.
“Strategically, the overlap with the rest of BP is limited, and it would take considerable capital for us to grow these businesses. As we work to build a more focused, more integrated BP, we have other opportunities that are more aligned with our future direction. The agreement is another deliberate step in building a bp that can compete and succeed through the energy transition.”