(RTTNews) - BP plc (BP.L, BP_UN.TO, BP) has agreed to sell its global petrochemicals business to INEOS for a total consideration of $5 billion. With the deal, the Group has now agreed $15 billion of divestments and other disposals through 2019 and 2020 to date, an amount originally expected to be reached by mid-2021. The transaction is expected to complete by the end of 2020.
Under 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.
BP's petrochemicals business is focused on two main businesses - aromatics and acetyls. The businesses have interests in 14 manufacturing plants in Asia, Europe and the US and in 2019 produced 9.7 million tonnes of petrochemicals.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
