LyondellBasell sells ethylene oxide business to INEOS

LyondellBasell, a global leader in the chemical industry, has announced an agreement to sell its Ethylene Oxide & Derivatives (EO&D) business and the associated production facility in Bayport, Texas, U.S.A., to INEOS Oxide, a division of INEOS.

This sale, valued at USD700 million, is a strategic move by LyondellBasell to focus on growing and upgrading its core operations.

The Ethylene Oxide & Derivatives business in Bayport is known for producing high-quality ethylene oxide and various derivatives. Its fully integrated platform boasts access to cost-advantaged feedstocks and logistics networks, earning an excellent reputation in the market.

“This transaction 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 Peter Vanacker, CEO of LyondellBasell.

He emphasised the difficult decision to divest businesses not aligned with the company’s core, praising the EO&D business for its positive cash generation, access to advantaged feedstocks, reliability, and skilled team. Vanacker expressed confidence in INEOS’ ability to continue generating value from the business and committed to a seamless transition.

INEOS’ strategic acquisition

Tobias Hannemann, CEO of INEOS Oxide, commented on the acquisition: “We are pleased to announce this strategic acquisition. INEOS is a leading producer in Europe, and this significant step expands its Ethylene Oxide & Derivatives business into the U.S., the world’s largest market. It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana.”

The transaction is expected to close in the second quarter of 2024, following the completion of planned maintenance at the facility. The closure is subject to regulatory and other customary closing conditions.

J.P. Morgan served as the financial advisor, and King & Spalding acted as legal counsel to LyondellBasell for this transaction.