Five billion dollars! BP agreed to sell its chemical business to Ineos
Sinochem news on June 29, oil giant BP announced that it agreed to sell its global chemical business to Ineos at a total price of $5billion. Limited by the regulators and their accelerated pace of transformation and upgrading; During the construction process of the project, he approved the transaction, which is expected to be completed by the end of 2020
bp said that the sale is a strategic measure to further reshape BP, which will further optimize BP's balance sheet and achieve the asset divestiture goal one year ahead of the original plan
according to the agreement, Ineos will pay BP $400million as the first payment, and pay another $3.6 billion when the transaction is completed. The remaining US $1billion will be postponed to pay US $100million in three times in March, April and may 2021, and the remaining US $700million will be paid before the end of June 2021. The business involved in this transaction currently has more than 1700 employees worldwide
bp's chemical business is mainly focused on aromatics and acetyl. Each business area has leading technology and powerful production plants, and has a strong performance in the Asian growth market. BP has interests in a total of 14 production plants located in Asia, Europe and the United States, producing a total of 9.7 million tons of chemical products in 2019
Bernard Looney, CEO of BP group, said: "this is another major measure for us to steadily reshape BP. In recent years, the performance of the chemical business has continued to improve and created highly competitive returns for the company. At present, there is great growth potential and we are also expanding circular economy related businesses."
Lu Bona said, "From the perspective of corporate strategy, the intersection between the chemical business and BP's other businesses is limited, and a lot of money needs to be invested to develop these businesses. As we strive to establish a more focused and Integrated BP, we will have other business opportunities that are more consistent with the future development direction. We want to build a BP that can stand out and succeed in the energy transformation. The agreement signed today is a step towards achieving this goal Another step of deliberate. "
Brian gilvary, chief financial officer of BP group, pointed out: "we achieved the asset divestiture target of $15billion a year ahead of schedule, which shows the scope and quality of the company's assets."
Ineos is a leading chemical company in the world, with businesses in 26 countries, more than 180 factories and about 22000 employees worldwide. In the past 20 years, Ineos has acquired many businesses from BP, the most notable of which is the acquisition of BP for us $9billion in 2005. It also has a subsidiary innovene with a low coefficient of thermal expansion similar to glass fiber. Innovene's main businesses include most of BP's chemical plants and two refineries at that time
it is reported that BP's aromatics business is a global leader in the production of purified terephthalic acid (PTA) and its precursor p-xylene (PX). PTA is a key raw material for the production of polyester plastics. BP's largest PTA production plants are located in China, the United States and Belgium, and its leading PTA production technology is licensed to manufacturers all over the world, with less research on TC6 alloy plates
acetyl business produces derivatives such as acetic acid and acetic anhydride, which are widely used in many industries. BP has many production bases in the United States, Britain, Chinese Mainland, South Korea, Taiwan, China and Malaysia. The sale will also include chemical recycling technology BP infinia and BP's related interests in acetylated wood developer tricoya
so far, BP has signed a total of $15billion asset divestiture and other asset disposal plan between 2019 and 2020. The original plan was to achieve this goal in the middle of 2021