INEOS Group agree sale of INEOS Fluor to Mexichem Fluor S.A.

02-04-2010: INEOS Group has agreed terms for the sale of its fluorochemicals business to Mexichem Fluor S.A. de C.V., a subsidiary of Mexichem S.A. de C.V. The deal comprises the international business and assets related to INEOS’ fluorochemical operations located in North America, Europe, and Asia. It is expected that on completion of the transaction, the business will become an integrated, global producer of speciality fluorochemicals with worldwide presence and annual sales revenue of over US$500 million.

David Price, CEO INEOS Fluor welcomed the news. “The agreement presents a unique opportunity to bring together the world’s largest supplier of fluorspar, with our own world leading fluorochemical production assets, customer base and research capabilities. The investment by Mexichem shows real commitment and confidence in the future of fluorochemicals, as a strategic business."

Elaborating on the reasons behind the sale, Price adds: “Whilst performing well, the fluorochemicals business no longer fits within the INEOS Group portfolio as it focuses its attention on its large-scale petrochemicals businesses.”

Ricardo Gutiérrez Muñoz, CEO, Mexichem said, “This agreement is a major step forward in the development and growth of Mexichem. Acquiring INEOS’ Fluorochemicals business reflects our ongoing strategy to add value to our main raw materials through vertical integration in more added value products, expanding our product range and extending the global reach of our fluorine products business.”

The sale is expected to be completed at the end of March, subject to necessary regulatory filings and approvals, including bank consent and approvals under applicable antitrust laws and regulations.