BP has agreed to sell its Arco Aluminium unit to a Japanese consortium for $680 million. The Japanese consortium is constituted of five Japanese companies.
BP has taken the decision to meet the cost of devastating oil spill in the Gulf of Mexico. The blast killed 11 workers and sent about 4.9 million barrels of oil gushing into the Gulf over a three-month period. The incident affected the economy and environment badly.
Arco Aluminium is a non strategic unit of BP which supplies aluminium sheet used to make beverage cans.
The Chief Executive of BP, Bob Dudley said that Sumitomo Light Metal Industries will take 40% of its shares. Furukawa Sky Aluminium Corp. will receive 35% of shares, Sumitomo Corporation will take 20%, and Itochu Metals Corporation will receive 3% and Itochu Corporation will receive 2% of the shares of the unit.
After the new deal, the shares of BP were consistent at 470p in early London trading. The UK oil group has also agreed to undergo a deal with US regulators, under which it will be allowed to drill 10 existing wells that were under way before the accident.
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