SABIC Acquires GE’s Plastics Unit For $11.6Bn
Saudi Basic Industries Corp (SABIC) announced on 21 May it had acquired General Electric’s plastics division, GE Plastics, for $11.6bn, adding to its major global acquisitions over the last five years that include Netherlands-based DSM Petrochemicals (MEES, 8 April 2002) and the UK’s Huntsman Petrochemicals (MEES, 2 October 2006). “This business is complementary to our existing business without any overlaps. SABIC’s intention is to grow the business globally,” said SABIC Chairman Muhammad al-Mady. “SABIC is well-positioned to do this, while adding high-performance plastics to the product range SABIC currently offers to customers.”
Houston-based SABIC Americas employs more than 200 people in the US through its own operations and a joint venture in New Jersey. With the GE acquisition, SABIC employment will swell to almost 30,000 people. The closing of the transaction is subject to completing regulatory approvals and is targeted to occur by the third quarter of 2007. SABIC is being advised by Citibank, Shearman & Sterling/Van Bael & Bellis as legal counsel, KPMG as the pension, financial and tax advisor, MERCER as the HR and Pension advisor, Jacobs Consultancy as the consultant on the plants, URS as the advisor of environmental Health and Safety, and Booz Allen Hamilton as General consultant and program manager.
