LyondellBasell (LYB) has entered into an agreement to sell its ethylene oxide and derivatives (EO&D) business along with the production facility located in Bayport, Texas to INEOS Oxide (INEOS). “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, LyondellBasell CEO.
Vanacker added, “Successful execution of this strategic pillar involves making difficult decisions to divest businesses, which are not part of our core. We remain proud of the positive cash generation, access to advantaged feedstocks, reliability and highly skilled team that makes up the EO&D business and are excited to have reached an agreement with INEOS to enable the business to continue generating value under different ownership. We look forward to collaborating closely with INEOS on a seamless transition”.
The press release stated that the ethylene oxide and derivatives business in Bayport produces high-quality ethylene oxide and various derivatives. The fully integrated platform with access to cost-advantaged feedstocks and logistics networks has excellent performance and reputation in the market.
Tobias Hannemann, CEO INEOS Oxide commented, “We are happy to announce this strategic acquisition. INEOS is a leading producer in Europe and this significant step expands its ethylene oxide and derivatives business into the US, which is the world’s largest market. It also complements our existing ethanolamines production facility in Plaquemine, Louisiana”. The purchase price for the transaction is $700 million. The transaction is expected to close in the second quarter of 2024 following completion of the planned maintenance at the facility.
