Slaughter and May advises INEOS on the acquisition of BP’s global petrochemicals business for an amount of $ 5 billion
British law firm Slaughter and May announced its advising to British multinational chemical company INEOS on the acquisition of BP’s global Petrochemicals business for US $ 5 billion, and also on related financing arrangements.
“This is another significant step as we steadily work to reinvent bp. These businesses are leaders in their sectors, with world-class technologies, plants and people. In recent years they have improved performance to produce highly competitive returns and now have the potential for growth and expansion into the circular economy”, said BP chief executive officer Bernard Looney.
BP’s petrochemicals business is focused on two main businesses – aromatics and acetyls – each of which has leading technology and advantaged manufacturing plants, including a strong presence in growth markets in Asia. In total, the businesses have interests in 14 manufacturing plants in Asia, Europe and the US and in 2019 produced 9.7 million tonnes of petrochemicals.
INEOS is one of the leading companies in the chemical sector with a network over 180 sites in 26 countries, employing some 22,000 staff worldwide.
“BP has had a long relationship with INEOS and this agreement reflects the mutual respect and trust that exists between us. It is a strategic deal for both parties that recognises both the high quality of the businesses and that INEOS is in many ways a natural owner for them”, said BP’s chief financial officer Brian Gilvary.
This transaction is subject to closing conditions, including regulatory approvals, and is expected to close later in 2020. US$ 1 billion of the purchase price will be deferred and paid in instalments in the first half of 2021.