US EditionSaudi SABIC to Sell European Chemicals Business for $950 Million
SABIC is divesting European and Americas petrochemical units to optimize its portfolio and improve margins amid weak pricing and high costs, with deals valued at $950 million.
- On Thursday, SABIC signed two agreements to sell SABIC Europe B.V. and its Engineering Thermoplastics business in the Americas and Europe for $950 million.
- As part of its long‑running Portfolio Optimization Program, SABIC said the moves follow prior exits like Hadeed, Alba and Functional Forms, with CEO Abdulrahman Al Fageeh saying `These transactions aim to boost free cash flow, lift margins and improve return on capital`.
- Valuation details show the European petrochemicals assets at $500 million and the ETP deal at $450 million, covering four European sites and eight facilities with about 4,800 employees in total.
- Closings are slated for the third quarter of 2026 and the fourth quarter of 2026 , subject to regulatory approvals and employee consultations, the company said.
- The sales mirror a sectorwide pullback from European operations as chemical peers reduce European footprints due to high costs, while naphtha-based crackers face cost disadvantages versus gas-based Middle East and US plants, aligning with Saudi Vision 2030 priorities, SABIC said.
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12 Articles
Sabic Sells Its Plastics Units In Americas, Europe In Separate Deals
Photo Credit: Saudi Basic Industries Corp. In a blockbuster materials deal designed to further its ongoing Portfolio Optimization Program, Saudi Basic Industries Corp. (Sabic) has announced the sale of its plastics businesses in the Americas and Europe in two major transactions valued at US$950 million. Riyadh-based Sabic has sold its engineering thermoplastics (ETP) business in the Americas and Europe to German financial firm Mutares SE & Co. K…
Saudi SABIC to Sell European Chemicals Business for $950 Million
Saudi Basic Industries Corporation (SABIC) has signed two separate agreements to sell its European petrochemicals business and the engineering thermoplastics business in the Americas and Europe, for a total of $950 million, Saudi Arabia’s chemicals giant said on Thursday. As part of a portfolio optimization SABIC announced the divestment of 100% of the shares in SABIC Europe B.V., comprising its European Petrochemicals business and assets, to…
SABIC to sell European and Americas petrochemicals assets, shifting focus to exports
SAUDI state-controlled petrochemical company SABIC has agreed to sell its manufacturing assets in Europe and the Americas for nearly US$1bn, reflecting an industry slowdown in the regions. Job losses have not been ruled out.
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