Ineos will pay $4bn upon completion of the transaction while the remaining $1bn is deferred until June 2021
BP’s global Aromatics and Acetyls business consists of 15 sites. (Credit: INEOS)
UK-based multinational chemicals firm Ineos is seeking to acquire BP’s global Aromatics and Acetyls business in a deal worth $5bn.
The business operates 15 sites including five in the Americas, two in Europe and eight in Asia as well as 10 joint ventures.
Aromatics provides the building blocks for the global polyester industry, which is key to fibres, films and packaging while acetyls support downstream industries in food flavouring and preservation, paints, adhesives, pharmaceuticals, and packaging.
Ineos founder and chairman Jim Ratcliffe said: “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.”
Subject to signing of the deal, the UK-based chemicals firm will pay $4bn upon completion of the transaction while the remaining $1bn deferred until June 2021.
Ratcliffe added: “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.”
BP’s Aromatics business provides PTA and PX technology
A provider of Purified Terephthalic Acid (PTA) and Paraxylene (PX) technology, BP’s Aromatics business operates six sites. It serves the global polyester business that includes polyester fibre, film and PET packaging.
The Acetyls business, which operating nine sites, produces acetic acid and a range of derivatives supplying downstream industries including food, pharmaceuticals, paints, adhesives and packaging.
Ineos expects the acquisition of BP’s Aromatics and Acetyls business to extend its portfolio and the geographic reach of the business.
In a statement, the chemicals firm said: “The deal is a good fit with INEOS existing asset base, reintegrating the Hull site and expanding the existing INEOS footprint at Geel, Belgium.”
In April this year, Ineos has teamed up with Plastic Energy to build an advanced plastic recycling facility.