INEOS completes purchase of BP’s global aromatics & acetyls business
INEOS has completed the purchase of BP’s global aromatics and acetyls businesses for a consideration of USD5 billion. INEOS Styrolution will be the acquirer of the BP businesses.
Announced in June 2020, BP said proceeds from the sale will be used by BP for general corporate purposes. Under the terms of the agreement, INEOS will pay BP a deposit of USD400 million and will pay a further USD3.6 billion upon completion. An additional USD1 billion will be deferred and paid in three separate installments of USD100 million in March, April and May 2021 with the remaining USD700 million payable by the end of June 2021.
BP’s petrochemicals business is focused on two main businesses – aromatics and acetyls – each of which has leading technology and advantaged manufacturing plants, including a strong presence in growth markets in Asia. In total, the businesses have interests in 14 manufacturing plants in Asia, Europe and the U.S. and in 2019 produced 9.7 million tonnes of petrochemicals.
“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. Today’s agreement is another deliberate step in building a BP that can compete and succeed through the energy transition,” Bernard Looney, BP chief executive officer, said at the time of the announcement.
INEOS is one of the world’s leading petrochemical companies and this acquisition will extend both the portfolio and the geographic reach of the business. The businesses will be known as INEOS Acetyls and INEOS Aromatics.
INEOS Aromatics 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.
INEOS Acetyls produces acetic acid and a range of derivatives from its nine sites, supplying a wide range of downstream industries such as food, pharmaceuticals, paints, adhesives and packaging.
“I am very pleased that we have been able to complete the acquisition, which 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,” said Sir Jim Ratcliffe, founder and chairman of INEOS.
