BP has completed its deal with
Solvay, announced in December 2000, significantly
strengthening its core
polyolefins businesses in Europe and the USA.
As result of the deal, BP has added Solvay's global
polypropylene business to its
existing business and the two companies have combined their high-density
polyethylene (HDPE) businesses into two
joint ventures. BP has also transferred its
non-core engineering
polymers business to Solvay.
Completion of the deal followed approval from the
European Commission and other
regulatory authorities.
The deal makes BP the world's second largest producer of polypropylene. The two
HDPE joint ventures - BP Solvay Polyethylene Europe (50 per cent BP, 50 per cent
Solvay), led by Robin McGill from BP, and BP Solvay Polyethylene North America (49
per cent BP, 51 per cent Solvay), led by Foster Brown from Solvay - will together
also be a leading player in their sector.
"This is a significant step in repositioning and upgrading our
chemicals portfolio," said
Byron Grote, chief executive of BP's chemicals businesses. "The deal expands BP's
worldwide reach in our core petrochemicals businesses, while exiting a non-core
business."
He added: "Our priority will now be to fully integrate the polypropylene businesses
and operate the HDPE partnership to access maximum synergies from these
combinations."