Saudi Basic Industries Corporation (SABIC) has signed contracts to sell all its interests in SABIC Europe BV and the business of Engineering Thermoplastics (ETP) business in the Americas and Europe.
The chemical manufacturing business, with a 70 percent stake in Saudi Aramco, stated that it has agreed with AEQUITA SE &Co. KGaA in Germany to sell 100 percent of its shares to SABIC Europe BV at an enterprise value of 1.88 billion Saudi riyals ($501 million).
The SABIC Europe BV comprises the company’s European petrochemicals business and assets, which include production facilities situated in the UK and the Netherlands.
The consideration will be wholly settled through two perpetual vendor notes that are to be repaid through future cash flows of the divested business and other European Olefins and Polyolefins assets of AEQUITA. The transaction is anticipated to be completed in Q4 2026.
However, SABIC will sell its ETP business to Mutares of Germany at an enterprise value of SAR 1.69 billion, comprising a cash transaction of SAR 210 million. This agreement is likely to be completed in Q3 2026.
SABIC indicated that the deals form part of its business plan to focus on high-growth markets, streamline the cost base, increase the rate of returns on capital invested, and maximise cash flows in the future.
