INEOS Acquires LyondellBasell’s Ethylene Oxide and Derivatives Unit
INEOS has recently announced its agreement to acquire the Ethylene Oxide and Derivatives business from LyondellBasell, including the Bayport Underwood site in Texas, for $700 million. This strategic acquisition includes the 420 kt Ethylene Oxide plant, the 375 kt Ethylene Glycols plant, and the 165 kt Glycol Ethers plant, along with all associated third-party business at the site.
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Ethylene Oxide is a critical raw material used globally in various industries, including pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, construction materials, antifreeze, brake fluids, solvents, paints, soaps, and detergents. INEOS's first acquisition in 1998, the Ethylene Oxide facility in Zwijndrecht, Belgium, laid the foundation for the company's growth in the chemicals sector.
Tobias Hannemann, CEO of INEOS Oxide, expressed enthusiasm for this significant expansion into the U.S., which represents the world's largest market for Ethylene Oxide and Derivatives. This acquisition not only extends INEOS's footprint but also complements its existing Ethanolamines production facility in Plaquemine, Louisiana. Hannemann highlighted the potential for growth at the Bayport Underwood site, noting its suitability for developing third-party business and supporting customer co-location and integration.
The Bayport Underwood site of LyondellBasell produces high-quality ethylene oxide and derivatives. It benefits from cost-advantaged U.S. energy, feedstocks, and logistics networks and has a strong performance record and market reputation.
Peter Vanacker, CEO of LyondellBasell, remarked that this transaction aligns with their strategic focus on value creation and core growth. He praised the EO&D business's cash generation, access to advantaged feedstocks, reliability, and skilled team. Vanacker expressed confidence that the business will continue to thrive under INEOS's ownership.
As part of the agreement, all current employees at the LyondellBasell Bayport Underwood Site, including some offsite workers, will transition to INEOS upon completion of the transaction. The target completion date is set for the second quarter of 2024, pending regulatory and other third-party approvals. With this acquisition, INEOS is set to acquire a world-class site with leading production facilities and an experienced team.
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According to the article by Procurement Resource, INEOS has agreed to acquire LyondellBasell's Ethylene Oxide and Derivatives business, including the Texas-based Bayport Underwood site, for $700 million. This acquisition includes significant production facilities and marks a strategic expansion into the U.S. market. The deal, set to complete in the second quarter of 2024, also involves transferring current employees to INEOS.
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