Petrochemicals Group, GE’s largest shareholder, said Thursday it will acquire GE Capital for $2.5 billion
Petrochemics Group, the world’s largest producer of chemicals, is closing a deal with the U.S. petrochemist group GE Capital, buying the largest shareholder in its parent company, Petrochemists Group, for $1.8 billion.
The deal closes the acquisition of Petrochemies, the second-largest producer of petrofuels, which makes a key ingredient for the fuel-cell technology powering electric vehicles.
The transaction also includes a stake in Petropax, a petroelectronics company owned by GE Capital that’s also owned by Petrochemistry.
The company is a key part of the petroecological industry, and the merger means the merged company will continue to have the world as its largest producer and supplier of petros.
Petrochemists said in a statement Thursday that it expects to close the transaction within three months and has entered into an option to purchase a controlling interest in the combined company.
The sale closes a six-year deal for Petrochemys that began in 2014, when the company sold its petro chemicals business to General Electric.
It is now the second largest producer in the world after Chevron, and employs nearly 2 million people worldwide.
Petropax also produces a wide range of chemicals that include biofuels and pesticides.
It has been in the news recently after it was revealed it had been fined $1 billion by the U,S.
Environmental Protection Agency for failing to ensure the safety of its biofuel blend.
Petrocases is also a major supplier of chemicals to U.K. energy giant Exelon, which has a long-term contract to supply petrogas to the U., but the company has been criticized for the quality of its products and its failure to provide customers with the right level of service.