BP sells petrochemical business to Ineos for $5bn

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Energy group says the sale will strengthen its balance sheet and deliver its divestments target a year earlier than planned

Bernard Looney. Picture: BP HANDOUT VIA REUTERSBritish energy group BP, hit hard by the coronavirus pandemic slashing demand for oil, announced on Monday the sale of its petrochemical business to privately owned rival Ineos for $5bn.

BP said that 1,700 staff employed by its petrochemical business worldwide were expected to transfer to Ineos on completion of the sale that meets a $15bn divestment target. BP must rebuild its finances, having earlier in June said it would take a hit of up to $17.5bn in the second quarter. Prices have however rebounded sharply in recent weeks as governments ease lockdowns and businesses slowly reopen."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," Ineos founder and chair Jim Ratcliffe said in a separate statement on Monday.

"Acetyls support a wide range of downstream industries in food flavouring and preservation, pharmaceuticals, paints, adhesives and packaging," it said.BP's share price was up 3.2% at 314.5p in London afternoon deals following news of the sale.

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