U.K. electricity large BP has reached an agreement to market its petrochemicals organization to Ineos for $five billion.

The deal involves a $four hundred million deposit by Ineos and $3.six billion on completion. The remaining $one billion will be paid out in three individual installments by June 2021.

In getting the petrochemicals organization, Ineos is acquiring BP’s aromatics and acetyls companies, which will assistance it get a foothold in Asia.

“It’s two major items of chemistry in that portfolio that we did not have before. It completes the set,” Ineos director Tom Crotty mentioned.

Crotty mentioned most of the $five billion obtain cost would be funded with financial debt.

“This is another considerable move as we steadily get the job done to reinvent BP,” Looney mentioned. “These companies are leaders in their sectors, with planet-class technologies, plants, and folks. In recent several years they have enhanced efficiency to generate really aggressive returns and now have the possible for progress and growth into the circular economy.”

In a assertion, BP mentioned the deal was “the future strategic step” in the reinvention of the corporation.

BP had fully commited to advertising off $15 billion in property and to lessening money paying out by $3 billion.

“With today’s announcement we have satisfied our $15 billion focus on for agreed divestments a complete yr ahead of agenda, demonstrating the vary and top quality of options offered to us,” mentioned chief financial officer Brian Gilvary.

In February, BP’s new chief government officer, Bernard Looney, pledged to dramatically cut emissions from its functions and from the merchandise it sells as portion of a “reinvention” of the 111-yr-outdated corporation, but the COVID-19 disaster has served speed up that transfer.

BP’s earnings fell 66% in the 1st quarter.

BP is preparing a money markets day where by it will explore its new strategic course in mid-September. The corporation expects to report its next quarter 2020 results on August 4.

Bernard Looney, Bp, Brian Gilvary, Ineos, petrochemicals