[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 7 October 2005, 20:00 GMT 21:00 UK
BP sells chemical unit for 5bn
BP logo outside petrol station
BP announced plans to hive off Innovene since April last year
BP has agreed to sell its petrochemicals unit for 5.1bn ($9bn) after scrapping plans to float the division on the London stock market.

The oil giant agreed to sell the business to UK-based company Ineos.

BP said the sale of Innovene was best for its investors as it "removed any uncertainty" over market conditions about the timing of a listing.

Last year BP announced it planned to either spin off or sell the business, which produces plastic goods.

Attractive target

"Innovene has proved to be a very attractive business to its peers in the chemicals sector. This deal is the very best of a number of good offers," BP chief Lord Browne said as he announced the sale.

Chicago-based Innovene employs 8,000 workers in seven countries in North America and Europe. It also generates revenues of 10.2bn each year.

Proceeds of the sale will be returned to shareholders, BP added.

Ineos said that the purchase meant it would become the fourth largest petrochemical firm in the world.

Formed in 1998, the group has grown rapidly and has a workforce of 7,000 in 14 countries. In the UK, it has facilities in Cheshire, Lancashire and south Glamorgan.

Hurricanes set to cost BP $700m
04 Oct 05 |  Business
Strong oil demand lifts BP profit
26 Jul 05 |  Business
BP oil rig in US Gulf is listing
12 Jul 05 |  Business
BP in $2bn Saudi investment deal
08 Jun 05 |  Business
Rising oil prices boost BP profit
26 Apr 05 |  Business
TNK-BP gets $936m Russia tax bill
11 Apr 05 |  Business

The BBC is not responsible for the content of external internet sites


Americas Africa Europe Middle East South Asia Asia Pacific