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BP Plc Is Selling Its Global Petrochemical Business For $5 Billion To Chemical Company Ineos

BP Plc Is Selling Its Global Petrochemical Business For $5 Billion To Chemical Company Ineos

The agreed deal is "the next strategic step in updating BP, which will strengthen the company's balance sheet," BP said in a press release. Thanks to the deal, the British oil company will be able to achieve the goal of separating assets worth $15 billion a year earlier than planned.

Under the terms of the agreement, Ineos will contribute $400 million to pay for the deal and another $3.6 billion after it closes. The remaining $1 billion will be paid in installments - $100 million each in March, April, and May 2021, and another $700 million by the end of June 2021.

The parties plan to close the deal by the end of 2020.

BP's petrochemical business has two main areas, the production of aromatic petroleum products and acetyl products, each of which has advanced technologies and modern production facilities, including in the rapidly developing countries of Asia. In total, BP's petrochemical business has stakes in 14 manufacturing plants in Asia, Europe, and the United States, and produced 9.7 million tons of petrochemical products in 2019.

Ineos is one of the largest chemical companies in the world, with more than 180 companies in 26 countries. Its global staff is 22 thousand people.

Ineos has acquired several assets from BP over the past 20 years. The largest of these deals was the purchase in 2005 of Innovene, which included the bulk of BP's chemical assets, for $9 billion.

BP shares are up 2.6% in London trading on Monday. Since the beginning of 2020, their cost has fallen by 34%.