BP Sells Petrochemicals Business to INEOS for $5 Billion
June 29 2020 - 05:31AM
Dow Jones News
By Jaime Llinares Taboada
BP PLC said Monday that it has agreed to sell its global
petrochemicals business to INEOS for $5 billion.
The British energy giant said that INEOS will pay a $400 million
deposit and a further $3.6 billion on completion of the deal, which
is expected by the end of 2020. The remaining $1 billion will be
deferred over three installments until June 2021, BP said.
BP's petrochemical business is focused on aromatics and acetyls.
It has interests in 14 plants in Asia, Europe and the U.S., and
achieved production of 9.7 million metric tons last year.
Chief Executive Bernard Looney said that the divestment is
another step in building a BP that can compete and succeed through
the energy transition. He noted that it would take considerable
capital for the company to grow the petrochemicals businesses.
Chief Financial Officer Brian Gilvary said that with this deal
BP has met its $15 billion target for agreed divestments a year
ahead of schedule.
Shares at 0856 GMT were up 5.05 pence, or 1.7%, at 309.65
pence.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
June 29, 2020 05:16 ET (09:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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