Saudi Basic Industries Corporation (SABIC) recently announced that it has reached agreements to sell its European petrochemical assets, as well as its engineering plastics assets in Europe and the Americas, to two German buyers, with a total transaction value of $950 million (approximately RMB 6.6 billion). According to the terms of the deals, SABIC will divest its European petrochemical business to the German private equity firm Aequita at an enterprise value of $500 million, while transferring its engineering plastics business in Europe and the Americas to the German company Mutares at an enterprise value of $450 million.

The divested European petrochemical business primarily covers core products such as ethylene, propylene, low-density polyethylene (LDPE), high-density polyethylene (HDPE), and polypropylene (PP). Its operations span the United Kingdom, Germany, the Netherlands, and Belgium, encompassing multiple large-scale manufacturing facilities with comprehensive production, sales, and supply chain management capabilities.

The engineering plastics assets, on the other hand, include production lines for high-end materials such as polycarbonate, polybutylene terephthalate, and acrylonitrile butadiene styrene. These assets are distributed across Brazil, Canada, Mexico, the Netherlands, Spain, and the United States, enabling them to meet the diverse demands of different regional markets.

SABIC stated that this divestment is a key strategic initiative aimed at optimizing the company’s operations. It is expected to enhance the company’s operational efficiency in multiple dimensions, including improving overall EBITDA (earnings before interest, taxes, depreciation, and amortization), strengthening free cash flow, and further boosting capital return rates.