Ineos Olefins and Polymers USA has agreed terms to acquire Sasol’s 50% stake in their joint venture, Gemini HDPE LLC for $404 million, thereby, becoming 100% owner of the asset.
Gemini is a toll-manufacturer of bimodal high-density polyethylene (HDPE) products serving rapidly growing pipe and film markets. Gemini HDPE plant, which has a capacity of 470,000 tonnes per year is operated by INEOS and located within the INEOS Battleground Manufacturing Complex in La Porte, TX.
The proposed acquisition is contingent on financing, is targeted to close by year-end, and would consolidate 100% of Gemini ownership and all marketing under INEOS.
Since Gemini’s start up in 2017, Ineos has operated the facility, and will continue to be, the operator of the unit which utilizes its Innovene S technology.
Michael Nagle, CEO of INEOS O&P USA said, “We are excited about the opportunity to acquire Sasol’s half of Gemini. This world-class asset is positioned to serve the growing global bimodal markets and would allow our business to meet increased demand from our customers.”
For Sasol, the objective of the sale is to focus on specialty chemicals and cut down debt. The company’s total debt was 189.7 billion rand ($12.34 billion) for the year to June 30.
“This divestment continues the transformation of Sasol’s Chemicals business toward specialty chemicals markets,” said Fleetwood Grobler, Sasol President and Chief Executive Officer. “We are pleased that our valued partner INEOS is acquiring Sasol’s share of the Gemini HDPE JV and appreciate our productive partnership over the past six years.”