LyondellBasell to sell ethylene oxide and derivatives unit to INEOS for $700m

In a significant move in the chemical industry, LyondellBasell (LYB) has announced its agreement to sell its Ethylene Oxide & Derivatives (EO&D) business, along with the Bayport, Texas production facility, to INEOS Oxide (INEOS). The all-cash transaction is valued at $700 million, representing a strategic shift for both companies.

Peter Vanacker, CEO of LyondellBasell, emphasized the importance of this divestiture as part of the company’s strategy to focus on core growth areas. “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,” Vanacker said. He expressed confidence in INEOS’s ability to continue generating value from the EO&D business and the commitment to a seamless transition.

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

LyondellBasell and INEOS Seal $700 Million Deal for EO&D Business

Tobias Hannemann, CEO of INEOS Oxide, expressed enthusiasm for the acquisition, highlighting the strategic expansion of INEOS’s Ethylene Oxide & Derivatives business into the US. “It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana,” Hannemann added.

The transaction, expected to close in the second quarter of 2024 following the completion of planned maintenance at the facility, 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.

This deal signifies not only a substantial move in the ethylene oxide and derivatives market but also marks a strategic enhancement in the capabilities and market presence of both LyondellBasell and INEOS. As the chemical industry continues to evolve, such transactions become pivotal in shaping the future landscape of global chemical production and distribution.