BP’s Aromatics and Acetyls business consists of 15 sites across the world (5 in the Americas, 2 in Europe and 8 in Asia) as well as 10 leading joint ventures.
INEOS announced its intention to purchase the global Aromatics and Acetyls businesses of BP for a consideration of $5 billion.
Aromatics provide the building blocks for the global polyester industry, key to fibres, films and packaging. Acetyls support a wide range of downstream industries in food flavouring and preservation, pharmaceuticals, paints, adhesives and packaging.
As per the deal, INEOS will pay $4 billion upon completion with the remaining $1 billion deferred until, at the latest, June 2021.
The deal is a good fit with INEOS existing asset base, reintegrating the Hull site and expanding the existing INEOS footprint at Geel, Belgium.
Sir Jim Ratcliffe, founder and chairman of INEOS says, “We are delighted to acquire these top-class businesses from BP, extending the INEOS position in global petrochemicals and providing great scope for expansion and integration with our existing business.”
INEOS is already one of the world’s leading petrochemical companies and this acquisition will extend both the portfolio and the geographic reach of the business.
The Aromatics business is a global leader in PTA (Purified Terephthalic Acid) and PX (Paraxylene) technology with 6 sites and supplies the global polyester business which includes polyester fibre, film and PET packaging. The Acetyls business with 9 sites produces acetic acid and a range of derivatives supplying a wide range of downstream industries such as food, pharmaceuticals, paints, adhesives and packaging.
Sir Jim Ratcliffe, founder and chairman of INEOS adds, “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.