Ineos to acquire Sasol’s equity in Gemini HDPE jv for US$404 mn

Chemical firm Ineos says it has agreed to acquire South African firm Sasol’s 50% equity interest in their joint venture Gemini HDPE manufacturing unit in La Porte, Texas, for US$404 million. Gemini is a toll-manufacturer of bimodal high-density polyethylene (HDPE) products serving rapidly growing pipe and film markets.

Gemini is operated by Ineos and located within the Ineos Battleground Manufacturing Complex in Texas. The proposed acquisition is contingent on financing, is targeted to close by year-end, and would consolidate 100% of Gemini ownership and all marketing under Ineos.

Since Gemini’s start-up in 2017, Ineos has been and will continue to be the operator of the unit which utilises Ineos’s proprietary Innovene S Technology.

Ineos says the proposed acquisition would allow it to further expand its reach in the specialty polyethylene markets of pressure pipe and high molecular weight film.

Michael Nagle, CEO of Ineos O&P USA said, “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.”

Ineos O&P USA is part of Ineos Group, one of the world’s leading petrochemical companies. This proposed acquisition would increase Ineos Group’s global HDPE market share and strengthen its ability to service the rapidly growing bimodal markets. Ineos’s global polymer businesses are produce polymers with a wide range of downstream end-uses such as food packaging, automotive, pharmaceutical packaging, thermoforming, pressure pipe, blow moulding, caps and closures, and film.

(PRA)

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