7th Oct 2005 14:25
BP PLC07 October 2005 7 October, 2005 BP AGREES SALE OF PETROCHEMICALS BUSINESS TO INEOS FOR $9 BILLION BP today announced that it is to sell Innovene, its olefins, derivatives andrefining group, to UK-based INEOS. The $9 billion cash sale, subject toregulatory approvals, includes all Innovene's manufacturing sites, markets andtechnologies. The sale is expected to be concluded early in 2006 at which timepayment will be received by BP. "Innovene has proved to be a very attractive business to its peers in thechemicals sector," said Lord Browne, BP Group Chief Executive. "This deal is thevery best of a number of good offers. I'm delighted with the outcome which isexcellent for BP's shareholders and for Innovene's future." BP first announced the intention of separating its olefins and derivativesbusiness from its petrochemicals portfolio in April 2004 with an initial publicoffering (IPO) as one, possible, disposal option. In the interim, it received anumber of approaches from companies considering a trade sale leading to thisdecision instead of the IPO. Browne said that the decision to sell Innovene in its entirety removed anyuncertainty around market conditions at the time of an IPO, as well as would-beinvestors' concerns about BP's remaining stake and future intentions. "Consistent with existing BP practice, we remain committed to returning excessfree cash flow, including the net proceeds of this sale, to shareholders," headded. "This is a transformational acquisition elevating INEOS to the world's fourthlargest independent petrochemicals company," said Jim Ratcliffe, INEOS ChiefExecutive. "INEOS and Innovene share a BP heritage of high quality people,assets and technology and are highly complementary businesses." Innovene is the 100 per cent BP-owned group created in April 2005. It has 8,000staff, manufacturing facilities in seven countries in North America and Europe;$18 billion revenues in 2004; $13 billion of gross assets; $9.9 billion of netassets; pre-tax profits (Jan-Jun 2005) of $0.7 billion; 18 million tonnes ofannual petrochemicals capacity and 412,000 barrels per day of crude oil refiningcapacity. Innovene's chief executive is Ralph Alexander and its chief financial officer isMark Tomkins. Innovene manufactures olefins and related products which are theraw materials for plastics, packaging and textiles industries; and operates tworefineries in Europe. BP was jointly advised by Goldman Sachs and Morgan Stanley on the IPO and sale. Notes to editors: BP announced the separation of its olefins and derivatives business in April2004. It then added two refineries (Grangemouth, UK, and Lavera, France) to thebusiness in November 2004, and created the 100% BP-owned Innovene subsidiary inApril 2005. BP is the world's second largest integrated oil and gas company, operating inmore than 100 countries with over 100,000 staff and turnover of $285 billion.INEOS is a leading global manufacturer of speciality petrochemicals andcomprises 10 business units each with a major chemical company heritage. Itsproduction network spans 46 manufacturing facilities in 14 countries. Innovene assets included in sale agreement: North America Europe Chocolate Bayou, Texas Grangemouth (chems/refinery), UK Texas City (chems), Texas Lavera (chems/refinery), France Hobbs Gas Fractionation Facility, Sarralbe, FranceTexas Battleground (ex-Deer Park), Texas Feluy, Belgium Green Lake, Texas Geel (polypropylene), Belgium Carson (chems), California Lillo, Belgium Lima, Ohio Koln, (excluding ethylene oxide), Germany Whiting (chems), Indiana Marl, Germany Joffre, Canada Rosignano, Italy The NOVA Innovene joint venture Further media enquiries: BP: Press Office +44 (0)207 496 4076 / 4827 www.bp.comINEOS: Press office +44 (0)2380 28 7081 / 7025 www.ineos.com - ENDS - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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