(Bloomberg) — BP Plc took another big step in its transition away from being a traditional oil company with the $5 billion sale of its chemicals business to Ineos Group Holdings SA.
The announcement comes just months after new Chief Executive Officer Bernard Looney set the London-based energy giant on course to eliminate its carbon emissions by 2050, a radical step that has since been followed by its peers.
The deal is „the next strategic step in reinventing BP,“ according to a company statement on Monday. It will „further strengthen BP’s balance sheet and delivers its target for agreed divestments a year earlier than originally scheduled.“
Under the terms of the agreement, Ineos will pay BP a deposit of $400 million, and a further $3.6 billion on completion. An additional $1 billion will be deferred and paid in three separate installments of $100 million in March, April and May 2021 with the remaining $700 million payable by the end of June 2021.
The sale is subject to regulatory and other approvals, and is expected to complete by the end of 2020.
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