THE WHAT? INEOS has announced its intention to acquire BP’s global Aromatics and Acetyls business for US$5 billion.
THE DETAILS The deal covers some 15 sites globally as well as 10 leading JVs with the Aromatics arm providing the building blocks for the global polyester industry and Acetyls supporting a wide range of downstream industries, including pharmaceuticals and packaging.
“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,” said Sir Jim Ratcliffe, Founder and Chairman of INEOS
Some US$4 billion will be payable on completion with the remaining US$1 billion deferred until June 2021, at the latest.
THE WHY? Ratcliffe explained that the acquisition would extend INEOS’ position in global petrochemicals and provide great scope for expansion and integration with its existing business.