Particle.news
Download on the App Store
3 ARTICLES
·
22h ago

SABIC Signs $950 Million Sales of European Petrochemicals, Thermoplastics Units

The disposals shift capital toward higher‑return businesses, with closings dependent on approvals expected in 2026.

SABIC is restructuring as the chemicals industry faces weak demand, divesting low-return operations and focusing on core chemical operations. Image: SABIC
Sabic, one of the largest listed companies in the Middle East, is majority owned by Saudi Aramco and trades on the Tadawul stock exchange. Reuters

Overview

  • SABIC agreed to sell SABIC Europe B.V. to Germany’s AEQUITA for $500 million, covering plants in the UK, Netherlands, Germany and Belgium.
  • Mutares will acquire the engineering thermoplastics business in the Americas and Europe for $450 million, with an earnout tied to free cash flow over four years and any future sale.
  • Both transactions remain subject to regulatory approvals and employee consultations, with targeted closings in Q3 2026 for the Mutares deal and Q4 2026 for the AEQUITA deal.
  • The company says the divestments will improve cash flow, margins and return on capital as part of a portfolio optimisation launched in 2022 during a tough European chemicals market.
  • Advisers on the processes include Goldman Sachs for the European sale and JPMorgan for the thermoplastics divestment, with Lazard, KPMG and A&O Shearman also advising.