Ashland Amends Composites Deal to Ineos
Ashland Global Holdings has amended the agreement for the sale of its composites business and German butanediol (BDO) plant to Ineos Enterprises. The US specialty chemicals company has removed the maleic business from the sale; the price remains unchanged at $1.1 billion.
The maleic assets comprise one facility in West Virginia, which generates annual revenue of about $75 million. Ashland said it will retain full ownership and be solely responsible for operating the maleic business going forward. However, it added that it intends to sell the maleic assets once the deal with Ineos has closed, with all proceeds, less reasonable costs incurred by Ashland, going to Ineos Enterprises.
Ashland did not elaborate further on the amendment, nor did it give any indication as to whether any other third party was interested in buying the maleic plant.
The sale of the composites business and Marl BDO plant is expected to close in late summer, subject to regulatory approvals and usual closing conditions.
The original agreement with Ineos Enterprises was announced last November. Ineos Enterprises has not commented on the amendment.
Ashland is retaining its BDO plant in Lima, Ohio, USA.