LONDON, Oct 7: British oil giant BP said on Friday it was to sell its petrochemical business Innovene to Britain-based chemicals group Ineos for $9 billion in cash. The sale, subject to regulatory approvals, includes all Innovene’s manufacturing sites, markets and technologies and was expected to be concluded early in 2006, BP said in a statement.

Proceeds from the sale would largely benefit BP shareholders, who have already been promised $23 billion by way of share buybacks and increased dividends.

“This deal is the very best of a number of good offers,” BP chief executive John Browne said in a statement.

“I’m delighted with the outcome which is excellent for BP’s shareholders and for Innovene’s future,” he added.

Innovene manufactures olefins and related products that are the raw materials for plastics, packaging and textiles industries, and operates also two refineries in Europe.

“It’s a very, very good price,” for Innovene, said Bruce Evers, an analyst at Investec Securities. Market expectations had been for a sale worth between $7 and $8 billion.—AFP