Saudi Basic Industries Corporation (SABIC) has signed two separate agreements to sell its European petrochemicals business and the engineering thermoplastics business in the Americas and Europe, for a total of $950 million, Saudi Arabia’s chemicals giant said on Thursday.
As part of a portfolio optimization SABIC announced the divestment of 100% of the shares in SABIC Europe B.V., comprising its European Petrochemicals business and assets, to AEQUITA, a Germany-based operator in the European industrial sector. The enterprise value of the deal is $500 million (1.875 billion Saudi riyals), the Saudi firm said in a statement to the Saudi stock exchange.
The transaction involves the sale of 100% of SABIC’s ownership in SABIC Europe B.V., including production facilities located in Teesside (United Kingdom), Geleen (Netherlands), Gelsenkirchen (Germany), and Genk (Belgium), along with all associated commercial activities and infrastructure to AEQUITA.
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Closing is expected in the fourth quarter of 2026, subject to satisfaction of conditions precedent.
Amid the petrochemicals industry downturn with oversupply and low margins, SABIC signed the deal to improve its return on capital employed (ROCE) by selling low-return operations and boost profit margins and cash flow, it said.
In a separate statement, the Saudi chemicals giant announced it would sell 100% of its Engineering Thermoplastics (ETP) business in the Americas and Europe to Mutares SE & Co KGaA, a publicly listed operational investor headquartered in Munich, Germany.
The agreed enterprise value for the transaction is $450 million (1.687 billion Saudi riyals), with closing expected in the third quarter of 2026.
Both transactions are part of strategic portfolio optimization and capital recycling towards growth markets and businesses, SABIC said.
“This transaction represents a significant step in SABIC’s strategic initiative to prioritize high-growth markets, optimize cost structure, enhance return on capital employed (ROCE), improve future cashflows, and ultimately maximize long term shareholders’ value,” the Saudi company noted.
By Tsvetana Paraskova for Oilprice.com
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