Sabic divests in the Americas and Europe for a value of 950 million dollars

Sabic has announced the signing of two strategic transactions to divest its European petrochemicals business to Aequita and its engineering thermoplastics business in the Americas and Europe to Mutares, for a total combined enterprise value of 950 million dollars. These transactions represent significant steps in the advancement of Sabic’s strategy and constitute a core component of its broader portfolio optimization program. The divestments together establish a strong foundation for future profitable growth and reinforce the company’s long-term strategic positioning for maximum value add.

These efforts are a continuation of Sabic’s plans to improve returns, focus on high margin markets and products where we have clear competitive advantage, recycle capital to higher-return opportunities and improve free cash flow, whilst continuing to serve its global customers and maximize shareholder value. Additionally, these transactions do not impact the technology and innovation focus and commitment that Sabic has for its customers. The divestments are expected to enhance Sabic’s performance, including through increasing overall Ebitda margins, improving free cash flow generation, and supporting higher return on capital employed (ROCE), enabling the Company to optimize capital and align its profitability aspirations with a value-accretive portfolio.

Importantly, both transactions will allow Sabic to maintain strategic access for its products through exports to both Europe and the Americas, which remain priority markets for the Company. Furthermore, Sabic’s leadership in global research, and advanced technology and innovation will be preserved, supporting effective customer service and sustainable growth.

In detail, Sabic has agreed to sell its European petrochemicals business to Aequita for 500 million dollars. The company’s European petrochemicals business produces and markets various products: ethylene, propylene, low- and high-density polyethylene, polypropylene, and value-added polymer compounds, and manages a number of manufacturing sites, including in Teesside (United Kingdom), Geleen, (Netherlands), Gelsenkirchen (Germany), and Genk (Belgium). Sabic has also agreed to sell its regional engineering thermoplastics business in the Americas and Europe to Mutares for 450 million dollars. Sabic’s Americas and European engineering thermoplastics business produces polycarbonate, PBT, and ABS resin and compounds, and manages manufacturing sites, including in Mt. Vernon, Ottawa, Bay St. Louis and Burkville (United States), Tampico (Mexico), Campinas (Brazil), Cartagena (Spain), and Bergen op Zoom (Netherlands).