NewsFlashINEOS buys Borealis Norway petchems

05 June 2007 10:43 [Source: ICIS news]

INEOS moves into Norway LONDON (ICIS news)--INEOS has agreed to buy Borealis’s petrochemical business in Norway for €290m ($392m), the UK-based chemicals major said on Tuesday.

The acquisition, which was expected to close in the third quarter, includes 50% of the Noretyl ethylene cracker at Rafnes and associated downstream, integrated businesses at the nearby Bamble polyolefins site, it added.

The deal follows the recent acquisition by INEOS Capital to buy Norsk Hydro’s polymers business (Kerling) and completes the total purchase of the Noretyl cracker, a 50:50 joint venture between Norsk Hydro and Borealis.

“The opportunity to purchase both shareholding interests in the Noretyl cracker presents INEOS with unique benefits by bringing the businesses at Rafnes under a single ownership,” INEOS said in a statement.

The company said the acquisition would provide a complementary fit with its existing olefins and polyolefins portfolios, technology and expertise.

“It also improves integration into key feedstocks allowing the company to optimise across its existing assets in Scotland (Grangemouth), Benelux (Antwerp, Lillo and Geel), Germany (Koln and Wilhelmshaven) and France (Lavera) giving INEOS an extended geographic reach in European markets,” it added.

“This acquisition presents important opportunities for us to support existing assets in the North West European ethylene network,” said Jim Ratcliffe, chairman of INEOS.

The Noretyl ethylene cracker was commissioned in 1977 and expanded by 100,000 tonnes/year in 2005. It currently has a capacity of 557,000 tonnes/year in addition to a propylene capacity of 80,000 tonnes/year.

It supplies the nearby Bamble site assets, which include polypropylene (PP), low density polyethylene (LDPE) and high density polyethylene (HDPE) plants.

The acquisition is conditional on receipt of bank consent and approval from the EU competition authorities.

($1 = €0.74)

By: Hilde Ovrebekk
+44 20 8652 3214

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