BP sell petrochemical business British chemical company Ineos for $5 billion
LONDON (Reuters) – BP (LON:BP) agreed to sell the global petrochemical business of the British company Ineos billionaire Jim Ratcliffe for $5 billion, leaving the sector, which is expected to become one of the key catalysts of growth in oil demand in the coming decades.
This unexpected move also means that BP has reached the goal of selling assets worth $15 billion a year earlier as the head of the company, Bernard Looney, preparing her for the transition to a low-carbon energy.
Shares of BP rose 3.1 percent to 14.45 GMT.
Looney acknowledged that the sale of the division, which employs 1,700 people, and which last year produced 9.7 million tonnes of petrochemical products, “will be a surprise.”
“Strategically, the intersection with the rest of the BP is limited and we will need significant capital to build this (petrochemical) business,” said Looney.
“Today’s agreement is another focused step in creating a BP that can compete and succeed during the energy transformation”.
The petrochemical division includes the share of industrial enterprises in the United States, Trinidad and Tobago, the UK, Belgium, China, Malaysia and Indonesia. BP sold the main part of the Ineos petrochemical business in 2005.
BP also announced plans to reduce costs in 2020 by 25% and cut of 10,000 jobs, as associated with the coronavirus decline in consumption has accelerated the implementation plans on transformation.
Ineos will make a Deposit of $400 million, and another $3.6 billion will be paid after closing, expected by the end of the year. The remaining $1 billion will be paid out in 2021.
Ratcliff called the acquisition “a logical development” petrochemicals Ineos, which owns a network of more than 180 facilities in 26 countries and employs approximately 22,000 employees.
(By Ron Bousso and Agarica Sabong in Bangalore, translated by Olga Deviatiarov. Editor Marina Bobrova)