INEOS to acquire LyondellBasell’s EO and derivatives business
HOUSTON (ICIS)–INEOS has reached an agreement to acquire LyondellBasell’s ethylene oxide (EO) and derivatives business, including the Bayport Underwood site in Texas, for $700m, the companies said on Friday.
The deal includes a 420,000 tonne/year EO plant, a 375,000 tonne/year ethylene glycols (EG) plant and a 165,000 tonne/year glycol ethers plant, together with associated third-party business at the Bayport Underwood site.
All current LyondellBasell employees at the site and some who work offsite will transfer to INEOS on completion of the transaction, which is targeted for the second quarter of 2024.
INEOS is a leading producer in Europe and the acquisition expands its EO and derivatives business into the US, which is the world’s largest market, said Tobias Hannemann, CEO of INEOS Oxide.
The acquisition would also complement INEOS’ existing ethanolamines production facility at Plaquemine, Louisiana, he said.
The Bayport Underwood site has free land to develop INEOS’ third-party business supporting customers to co-locate and integrate into the existing EO and derivatives platform, INEOS added.
For LyondellBasell, the sale of the business is “evidence of our disciplined focus on value creation through the execution of a key pillar of our strategy – growing and upgrading our core,” said CEO Peter Vanacker.
Thumbnail shows a model of EO. Image by ICIS.
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