Who would or could buy INEOS Automotive if the company has to be sold to relieve debt?

[Earthwatcher]

There has been much in the press recently about INEOS's mounting debts, partly due to overall chemical sector decline. The Grenadier was something of an emotional project for Jim Ratcliffe. He liked his Landrover so much he wanted to buy the production facility and JLR wouldn't sell to him, so he decided to make his own dream 4x4. We all know the story and most of us here bought in to it. I'd hate to think of the company closing down completely but I could foresee a day when Ratcliffe had little choice but to dispose of it. If that happened, who might emerge as a potential buyer? BMW? I can't see it fitting in to any large automotive portfolio. Could it interest a group of venture capitalists? Or could we be left as a relatively small group of enthusiastic owners scratching around for spare parts? I wouldn't mind being part of the latter as long as parts and support were put in place.

 

[Emil]

At current estimated valuation levels, standard M&A logic would suggest transferring the business on a debt-free basis (waiving all intercompany loans – £3 bn?) and equipping it with substantial positive working capital (cash injection – £200 m?), to arrive at a nominal purchase price of £1. This makes a sale unattractive as long as INEOS’ chemicals business is able to cross-subsidize INEOS Automotive (c. £400 m p.a.?). Any prospective buyer, whether financial or strategic, would effectively need to achieve two things: first, absorb and manage the ongoing uncertainty surrounding the ICE/BEV transition and global market distortions (tariffs, crises); and second, identify and develop scalable world-market opportunities. I am not an automotive industry expert, but I struggle to see who could be better positioned to accomplish this than INEOS itself. I trust my Grenadier and hope the chemical industry recovers quickly. Failing that, it is still not merely another billionaire’s toy, but rather a personal legacy – which could motivate private capital injections. Failing that as well, some private equity fund will likely acquire it and eventually sell it on. I drive, and do not worry.

 

[Tenac]

Honestly I think BMW should or would.

 

[CRH]

We could all club together and have an owners buy out. I have a spare £1, how many shares do I get.

The world is a strange place, rulers come and go, it may get worse or it could become a higly profitable business that expands the range, as intended with the Fusilier until governments put a spanner in the works. Ineos may be the next TESLA, Jim certainly had a go at upsetting some in that interview Enjoy what you have and stop worrying about the what ifs. Get out there, use as intended or as you wish, we could be far worse off as possibly some owners are now.