Ineos in £1bn deal to buy Dong's oil and gas division
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Ineos, which is controlled by billionaire chairman Jim Ratcliffe, said the move will propel it into a top ten company and the biggest private group operating in the North Sea.
• READ MORE: BP to sell Forties pipeline to Ineos for £199m
It will boost its so-called upstream division, seeing it add a portfolio of production, development and exploration sites off the coast of Denmark, Norway and West of Shetland area.
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Hide AdAround 440 staff will also transfer from Dong on completion of the deal, which is expected in the third quarter.
Ratcliffe said the business was a “natural fit” for the group as it expands its upstream arm.
He added: “This business is very important to us at this stage of our growth plans and we are delighted with the expertise that comes with it.”
Ineos has agreed to pay $1.05bn and a further potential $250 million for the Dong division.
Henrik Poulsen, chief executive of Dong, said: “Since the decision in 2016 to divest our upstream oil and gas business, we’ve actively worked to get the best transaction by selling the business as a whole, getting a good and fair price for it and ensuring the optimal conditions for the long-term development of the oil and gas business.
“With the agreement with Ineos we’ve obtained just that.”
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Hide AdThe acquisition comes after Ineos recently snapped up a 235-mile pipeline from BP, which transports nearly 40 per cent of the UK North Sea’s oil and gas production, for up to $250m.
Ineos employs around 18,500 people across 105 sites in 22 countries. It is the 200th largest business in the world, with sales of $40bn a year.
When it launched in 1998, the group had 400 staff and annual sales of $200m.