HOUSTON, Dec. 8, 2023
/PRNewswire/ -- LyondellBasell (LYB) today announced it has entered
into an agreement to sell its Ethylene Oxide & 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. "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 Ethylene Oxide & 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
said, "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 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 and is subject to regulatory
and other customary closing conditions. J.P. Morgan acted as
financial advisor and King & Spalding acted as legal counsel to
LyondellBasell.
About LyondellBasell
We are LyondellBasell (NYSE: LYB)
– a leader in the global chemical industry creating solutions for
everyday sustainable living. Through advanced technology and
focused investments, we are enabling a circular and low carbon
economy. Across all we do, we aim to unlock value for our
customers, investors and society. As one of the world's largest
producers of polymers and a leader in polyolefin technologies, we
develop, manufacture and market high-quality and innovative
products for applications ranging from sustainable transportation
and food safety to clean water and quality healthcare. For more
information, please visit www.lyondellbasell.com or follow
@LyondellBasell on LinkedIn.
Cautionary Note Regarding Forward-looking
Statements
The statements in this release relating to
matters that are not historical facts are forward-looking
statements. These forward-looking statements are based upon
assumptions of management which are believed to be reasonable at
the time made and are subject to significant risks and
uncertainties. Actual results could differ materially from the
anticipated results, or other expectations expressed in this
release, including, but not limited to, receipt of required
regulatory approvals or the expiration of applicable waiting
periods; the satisfaction of closing conditions; our ability to
complete the transaction described in this release within the time
period suggested; and our ability to implement our strategy and
successfully align our asset base with that strategy. While these
statements and projections are made in good faith, LyondellBasell
and its management cannot guarantee that anticipated future results
will be achieved. Additional factors that could cause results to
differ materially from those described in the forward-looking
statements can be found in the "Risk Factors" section of our Form
10-K for the year ended December 31,
2022, which can be found at www.LyondellBasell.com on the
Investor Relations page and on the Securities and Exchange
Commission's website at www.sec.gov.
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SOURCE LyondellBasell Industries