Petrochemical company INEOS has announced its intention to purchase the global Aromatics and Acetyls businesses of BP in a $5 billion deal.
WHO: Aromatics provide the building blocks for the global polyester industry, key to fibers, films, and packaging. Acetyls support a wide range of downstream industries in food flavoring and preservation, pharmaceuticals, paints, adhesives, and packaging.
INEOS is already one of the world’s leading petrochemical companies
WHY: This deal will extend both the portfolio and the geographic reach of the INEOS business. The company will acquire a range of world-class assets and an experienced team of people.
IN THEIR OWN WORDS: 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,” Looney continued.
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