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INEOS to buy BP´s Innovene business for $9bn

INEOS today announced the acquisition of Innovene, BP’s olefins and derivatives and refining subsidiary, for $9 bn. Following completion the combined businesses will have a turnover of more than $30bn, making the expanded INEOS group the world’s 4th largest independent petrochemicals company.

The acquisition of Innovene fits with INEOS’s strategy to grow its petrochemical business and the addition of the Lavéra and Grangemouth refineries further integrates the business upstream. INEOS was formed by a management buy out of the former BP petrochemicals asset in Antwerp, which was led by Jim Ratcliffe, Chief Executive of INEOS. The company has subsequently grown through a series of successful acquisitions, it has a turnover of $8bn and employs 7500 employees worldwide. 

Innovene is a 100 per cent BP-owned group created in April 2005. It has 8,000 staff, manufacturing facilities in seven countries in North America and Europe; $25 billion estimated sales for 2005; $13 billion of gross assets; $9.9 billion of net assets; pre-tax profits (Jan-Jun 2005) of $0.7 billion; 18 million tonnes of annual petrochemicals capacity and 412,000 barrels per day of crude oil refining capacity. 

This is a transformational acquisition elevating INEOS to the world’s fourth largest independent petrochemicals company’, said Jim Ratcliffe, INEOS Chief Executive. ‘INEOS and Innovene share a BP heritage of high quality people, assets and technology and are highly complementary businesses.’ 

Lord Browne, BP´s Group Chief Executive said that the decision to sell Innovene in its entirety removed any uncertainty around market conditions at the time of an IPO, as well as would-be investors´ concerns about BP´s remaining stake and future intentions. 

Innovene has proved to be a very attractive business to its peers in the chemicals sector,’ said Lord Browne, BP Group Chief Executive. ‘This deal is the very best of a number of good offers. I’m delighted with the outcome which is excellent for BP’s shareholders and for Innovene’s future.” 

Subject to regulatory approval by the competition authorities in the US and Europe, INEOS and BP plan to complete the deal around the beginning of 2006. 

For further media enquiries: 

INEOS 
Richard Longden
Phone: 07710 371998
Website: www.ineos.com

BP press office 
Phone: +44 (0) 207 496 4076/4827 

Note to editors: 

INEOS is a rapidly growing manufacturer of petrochemicals, speciality and intermediate chemicals and polymers. It comprises 10 businesses each with a blue chip, chemical company heritage, and its production network includes 46 manufacturing facilities in 14 countries throughout the world. In 2004, INEOS had approximately 7500 employees and sales of more than $8 bn. 

BP announced the separation of its olefins and derivatives business in April 2004. It then added two refineries (Grangemouth, UK, and Lavéra, France) to the business in November 2004, and created the 100% BP-owned Innovene subsidiary in April 2005. 

Innovene opened its global headquarters in downtown Chicago in April 2005. The company's European headquarters is in Staines, near London. Innovene´s North American headquarters is in the Greater Houston area. Its headquarters in Asia are in Shanghai.