The United Kingdom's oil and gas giant, BP, is set to sell its petrochemical business to multinational chemicals producer INEOS for $5 billion, the company said in a press release on Monday
MOSCOW (Pakistan Point News / Sputnik - 29th June, 2020) The United Kingdom's oil and gas giant, BP, is set to sell its petrochemical business to multinational chemicals producer INEOS for $5 billion, the company said in a press release on Monday.
"bp today announced that it has agreed to sell its global petrochemicals business to INEOS for a total consideration of $5 billion, subject to customary adjustments. The agreed sale, the next strategic step in reinventing bp, will further strengthen bp's balance sheet and delivers its target for agreed divestments a year earlier than originally scheduled," the press release said.
According to BP, the agreement envisages that INEOS will pay a deposit of $400 million and then a further $3.6 billion, while an additional $1 billion will be deferred and paid in three separate transfers of $100 million in March, April and May 2021, with the remaining $700 million payable by the end of June 2021.
"As we work to build a more focused, more integrated bp, we have other opportunities that are more aligned with our future direction. Today's agreement is another deliberate step in building a bp that can compete and succeed through the energy transition," BP CEO Bernard Looney said, as quoted by the statement.
INEOS is one of the world's largest chemical companies with more than 180 plants in 26 countries and a headquarters located in London. Over the past two decades, INEOS has acquired a number of businesses from BP. Namely, in 2005, the company bought for $9 billion the company's subsidiary, Innovene, which at that time included most of BP's chemical assets and two refineries.
