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Saudi Basic Industries Corporation (SABIC) has signed agreements to divest its entire stake in SABIC Europe BV and the Engineering Thermoplastics (ETP) business in the Americas and Europe.
The chemical manufacturing company, in which Saudi Aramco holds a 70% stake, said it has signed an agreement with Germany’s AEQUITA SE &Co. KGaA to sell 100% of its shares in SABIC Europe BV for 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 includes production facilities located in the UK and Netherlands.
The consideration will be settled entirely via two perpetual vendor notes repayable based on future cashflows from the divested business and other European Olefins and Polyolefins assets of AEQUITA.
The deal is expected to close is Q4 2026.
SABIC expects the fair valuation of SABIC Europe to result in a non-cash loss of SAR 10.8 billion, to be recorded in its Q4 2025, based on the net assets to be transferred.
Separately, SABIC will divest its ETP business to Germany’s Mutares for an enterprise value of SAR 1.69 billion, which will include a cash deal of SAR 210 million.
This deal is expected to close is Q3 2026.
SABIC said the transactions are a part of its strategy to prioritise high-growth markets, optimise cost structure, enhance return on capital employed, and improve future cashflows.
(Writing by Bindu Rai, editing by Brinda Darasha)
