SABIC sells its European petrochemical business

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On January 8, Saudi Basic Industries Corporation (SABIC) announced that it had agreed to sell its petrochemical assets in Europe, as well as its engineering plastics assets in Europe and the Americas, to two German buyers for a total value of $950 million (approximately 6.6 billion yuan). Under the agreement, SABIC will sell its European petrochemical business to the German private equity firm Aequita for an enterprise value of $500 million, and its engineering plastics businesses in Europe and the Americas to the German company Mutares for an enterprise value of $450 million. SABIC’s European petrochemical business produces and sells ethylene, propylene, low-density polyethylene (LDPE), high-density polyethylene (HDPE), polypropylene (PP), etc., and operates multiple manufacturing facilities in the UK, Germany, the Netherlands, and Belgium. The engineering plastics assets sold by SABIC include multiple polycarbonate, polybutylene terephthalate, and acrylonitrile-butadiene-styrene plants, which are located in Brazil, ***, Mexico, the Netherlands, Spain, and the United States. SABIC states that this sale is expected to improve the company’s performance, by increasing overall EBITDA, enhancing free cash flow, and supporting a higher return on capital.