Ineos’s profile in the global petrochemical industry moved to another level on 29 June with the announcement it is to purchase BP’s Aromatics and Acetyls businesses for a total consideration of $5 billion, according to press statements from both companies. The deal includes all of BP’s production assets for paraxylene, purified terephthalic acid, acetic acid, acetic anhydride, vinyl acetate monomer and related products.
The deal does not include assets at Gelsenkirchen (cracker) and Mulheim, Germany (aromatic solvents), which are highly integrated with BP’s Gelsenkirchen refinery.
According to an Ineos company spokesman, production technologies for acetic acid and PTA were included in the sale.
Subject to regulatory and other approvals, the transaction is expected to complete by the end of 2020, according to the companies. Under terms of the deal, Ineos will pay BP a deposit of $400 million and will pay a further $3.6 billion on completion. An additional $1 billion will be deferred and paid in three separate instalments of $100 million in March, April and May 2021 with the remaining $700 million payable by the end of June 2021.
Various aspects of the Deal are analysed below: