Ineos Buys Out Sasol in Gemini JV
Ineos Olefins and Polymers USA has agreed terms to buy Sasol’s 50% stake in their Gemini joint venture for $404 million, taking full ownership. The deal is scheduled to close by year end, contingent on financing.
Located in Bayport, Texas – the site of Ineos’ Battleground complex – Gemini is a toll manufacturer of bimodal high-density PE for the pipe and film markets, which Ineos said are seeing rapid growth. Ineos has operated the facility, which uses its Innovene S technology, since it started up in 2017.
“We are excited about the opportunity to acquire Sasol’s half of Gemini. This world-class asset is positioned to serve the growing global bimodal markets and would allow our business to meet increased demand from our customers,” said Ineos O&P CEO Michael Nagle.
For Sasol, the sale represents another step toward achieving its strategic and financial objectives, notably accelerating its focus on specialty chemicals and reducing net debt. Proceeds from the sale will repay near-term debt obligations.
Ineos previously missed out on taking a share in Sasol’s newly built production complex in Lake Charles, Louisiana. That went to LyondellBasell, who agreed in October to pay $2 billion for a 50% stake in the ethane cracker and PE plants. The jv, called Louisiana Integrated PolyEthylene, is also due to be finalized by year end.
Author: Elaine Burridge, Freelance Journalist
