Chevron has expressed interest in purchasing Phillips 66’s stake in their chemicals joint venture, Chevron Phillips Chemical, according to a report by Bloomberg. While no formal discussions have taken place, Chevron sees petrochemicals as a strategic growth area and could pursue the deal if Phillips 66 is open to selling.
The potential transaction follows pressure from Elliott Investment Management, which recently built a $2.5 billion stake in Phillips 66 and has urged the company to divest non-core assets, including its chemical business. Elliott values Phillips 66’s stake in the joint venture at approximately $15 billion, though the final price would depend on market conditions.
Phillips 66 has yet to indicate whether it is willing to part with its stake in the joint venture, which was formed in 2000 with Chevron. Both companies hold a right-of-first-refusal over each other’s shares in the business. Chevron CEO Mike Wirth recently emphasized the long-term growth potential of the chemicals sector, citing increased demand for lightweight plastics in automotive and aerospace industries. Meanwhile, Elliott continues to push for broader structural changes at Phillips 66, including the potential sale or spinoff of its midstream business, which it believes could fetch over $40 billion.
Written By: João Fernando
