C-MACC Perspectives No 21
“Mom, Am I Really an Oil Company”? BP – Ineos; And More Structural Change
- The sale of BP Chemicals to Ineos makes sense for both companies and is in no way out of step with our thesis of committed oil producers moving further downstream. It perhaps gives some insight into what BP does next.
- Oil majors are already making decisions about how they want to position themselves for the future, but we believe that some further major moves will need to made by many companies over the next 24 months, and while they may be as radical as the path chosen by BP, they could be directionally very different.
- With the completion of the BP deal, Ineos will become a larger and more diverse basic chemical conglomerate and a more significant consumer of oil fractions. Ineos is a very large business, but not too big to buy and would be a major downstream integration play for any number of oil majors.
See PDF below for all charts