SABIC further optimizes its portfolio for long-term sustainable growth, divests its European Petrochemical (EP) business and its Engineering Thermoplastics (ETP) business in the Americas and Europe

 

“I am pleased that both AEQUITA and MUTARES will work with us in the future to ensure that we continue to serve our global customers in a seamless manner,” Al-Fageeh also stated.

 
Salah Al-Hareky, Chief Financial Officer of SABIC, said: “These transactions are a clear demonstration of our disciplined approach and decisive execution regarding capital allocation and active portfolio management. By unlocking value to fund higher-return opportunities, we are improving the quality and efficiency of our capital employed and enhancing the group’s ROCE over time. Together, these actions position SABIC to deliver sustainable returns and create value for our shareholders.”
 
These transactions reposition SABIC for longer-term success by refocusing financial resources and management attention towards growth areas where the Company has clear competitive advantages.
 
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.
 
SABIC, alongside the buyers, will maintain business continuity, customer service excellence, and the highest standards of safety, reliability and compliance throughout the transition and beyond for both divestments. In this context, SABIC is committed to ensuring a seamless separation, minimizing disruption to ongoing operations, and preserving strong relationships with all stakeholders, including customers.
 
Completion of these transactions is subject to customary closing conditions and regulatory approvals, including employee consultation where relevant.
 
Transaction: European Petrochemicals business
 
SABIC has agreed to sell its European Petrochemicals (EP) business to AEQUITA for an enterprise value of $500 million.
 
SABIC’s EP business produces and markets various products: ethylene, propylene, low-and high-density polyethylene (LDPE, LLDPE, and HDPE), polypropylene (PP), and value-added polymer compounds, and manages a number of manufacturing sites, including in Teesside, the United Kingdom; Geleen, the Netherlands; Gelsenkirchen, Germany; and Genk, Belgium.