INEOS to buy BP´s Innovene business for $9bn
INEOS announced the acquisition of Innovene, BP's olefins and derivatives and refining subsidiary, for $9 bn. Following completion the combined businesses will have a turnover of more than $30bn, making the expanded INEOS group the world's 4th largest independent petrochemicals company.
The acquisition of Innovene fits with INEOS's strategy to grow its petrochemical business and the addition of the Lavéra and Grangemouth refineries further integrates the business upstream. INEOS was formed by a management buy out of the former BP petrochemicals asset in Antwerp, which was led by Jim Ratcliffe, Chief Executive of INEOS. The company has subsequently grown through a series of successful acquisitions, it has a turnover of $8bn and employs 7500 employees worldwide.
Innovene is a 100 per cent BP-owned group created in April 2005. It has 8,000 staff, manufacturing facilities in seven countries in North America and Europe; $25 billion estimated sales for 2005; $13 billion of gross assets; $9.9 billion of net assets; pre-tax profits (Jan-Jun 2005) of $0.7 billion; 18 million tonnes of annual petrochemicals capacity and 412,000 barrels per day of crude oil refining capacity.
Subject to regulatory approval by the competition authorities in the US and Europe, INEOS and BP plan to complete the deal around the beginning of 2006.
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