In a case of the little fish swallowing the big fish, Ineos has agreed to buy BPs Innovene – an olefins and derivatives business that is more than triple its size – for $9 billion. The transaction, expected to be completed around the beginning of 2006, would broaden Ineos activity with chemicals used in the lubricants industry.
Ineos, which is based in Southampton, U.K., is currently made up of nine businesses that supply diverse specialty and intermediate chemicals, from chlorine to phenols to silicas and vinyl. Ineos Chlor, one of thenine,supplies among other products chlorinated paraffins used in cutting fluids to provide extreme pressure protection. Ineos recorded sales of $8 billion in 2004.