SABIC's Asset Sale Worth $950 Million

Saudi Arabia-based Saudi Basic Industries Corporation (SABIC) has agreed to transfer its petrochemicals business in Europe and engineering plastics units in Europe and the Americas to two separate investment groups for a combined USD 950 million. Through this move, the company aims to focus on higher value-added areas and increase capital efficiency.

Two Separate Sales Transactions
SABIC will sell its European Petrochemicals (EP) business unit to investment company Aequita SE & Co. KGaA for USD 500 million. The EP unit encompasses the production and sale of ethylene, propylene, polyethylene and polypropylene products. SABIC's units in the United Kingdom, Netherlands, Germany and Belgium will also change hands under this scope.

The company will also transfer its Engineering Thermoplastics (ETP) business unit to Mutares SE & Co. KGaA for USD 450 million. The unit in question encompasses facilities producing polycarbonate (PC), polybutylene terephthalate (PBT) and acrylonitrile butadiene styrene (ABS) plastics as well as compounds of these materials.

Both agreements include earn-out mechanisms tied to post-closing performance.

Portfolio Optimization Strategy
SABIC states that these sales, as part of its portfolio optimization program launched in 2022, represent a critical step in focusing on higher-return products and markets. Company management has indicated that strengthening operational capital efficiency and increasing free cash flow are among strategic priorities.

SABIC Chief Executive Officer Abdulrahman Al-Fageeh stated that these sales are aligned with the company's sustainable growth targets and that SABIC will maintain its commercial presence in European and American markets.

Strategic Approach of Buyers
Aequita explains that SABIC's petrochemicals assets in Europe will create significant synergies with its existing portfolio and will provide operational scale in the European olefin-polyolefin market.

Mutares plans to place the engineering plastics unit at the center of a new strategic segment. The company aims to build a stronger structure in advanced materials and specialty chemicals.

Transaction Completion Process
Both sales transactions are subject to approval by relevant regulatory authorities and are expected to be completed during 2026.

Chemical and plastics industry circles view the sales as a significant restructuring step in SABIC's global positioning, while commentary suggests that competitive dynamics in the European market may also shift following the transaction.

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