Ineos Group Ltd. has reached an agreement to acquire LyondellBassell Industries NV’s ethylene oxide (EO) and derivatives business, including a plant at Bayport, Texas, for $700 million.

The deal includes a 420,000 metric tons EO plant, a 375,000 metric tons ethylene glycols (EG) plant and a 165,000 metric tons glycol ethers plant, along with all associated third-party business on the site, Ineos’ statement said. LyondellBasell announced in March that it was evaluating a sale of the EO business.

The transaction marks Ineos’ entrance into the US EO market. It is the second-largest EO maker in Europe, trailing BASF SE. The deal is expected to close in the second quarter of 2024 following completion of planned maintenance at the Bayport site, the companies said.

“Ineos is a leading producer in Europe, and this significant step expands its ethylene oxide & derivatives business into the US, which is the world’s largest market. It also complements our existing ethanolamines production facility in Plaquemine, Louisiana,” said Tobias Hannemann, CEO of Ineos Oxide. EG is the largest end market for EO. Other end uses include ethoxylates and ethanolamines.

Hannemann added that available land on the Bayport site supports Ineos’ growth and is also ideal for the development of “our third-party business supporting customers to co-locate and integrate into an existing ethylene oxide & derivatives platform.”