BP Completes Deal To Strengthen Core Polymers Businesses

02-Nov-2001
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."

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