ENERGY giant Ineos has struck a five billion dollar (£4 billion) deal to buy BP’s petrochemicals business.
Ineos will pay BP in six instalments until June next year for its petrochemicals business which makes a key component in polyester.
The business employs around 1,700 staff, spread mainly across the Asia, the US, Belgium and a plant in Hull. It also has a office based in Aberdeen’s Kingswells.
It means that a changing BP has met its promise to sell off 15 billion dollars (£12 billion) of assets a year earlier than initially promised.
It is another step in a revamp led by the FTSE 100 listed oil giant’s new boss Bernard Looney.
Mr Looney said: “This is another significant step as we steadily work to reinvent bp.
These businesses are leaders in their sectors, with world-class technologies, plants and people. In recent years they have improved performance to produce highly competitive returns and now have the potential for growth and expansion into the circular economy.
“I am very grateful to our petrochemicals team for what they have achieved over the years and their commitment to bp.
“I recognise this decision will come as a surprise and we will do our best to minimise uncertainty.
“I am confident however that the businesses will thrive as part of INEOS, a global leader in petrochemicals.”
Sir Jim Ratcliffe, Ineos founder, said: “We are delighted to acquire these top-class businesses from BP, extending the Ineos position in global petrochemicals and providing great scope for expansion and integration with our existing business.
“This acquisition is a logical development of our existing petrochemicals business extending our interest in acetyls and adding a world leading aromatics business supporting the global polyester industry.”
The 1,700 jobs at BP petrochemicals are expected to transfer over to Ineos, BP said.