SABIC Divests European Petrochemicals and Americas/Europe Engineering Thermoplastics Businesses for $950 Million

Published By DPRJ Universal | Published on Thursday, 8 January 2026

Saudi Basic Industries Corporation (SABIC) announced two strategic divestments totaling $950 million to optimize its portfolio. It will sell its European Petrochemicals (EP) business to AEQUITA for $500 million and its Engineering Thermoplastics (ETP) business in the Americas and Europe to MUTARES for $450 million plus an earn-out. This move aims to enhance returns, focus on high-margin markets, recycle capital, and maximize shareholder value as part of a broader portfolio optimization program.

SABIC, the Saudi Basic Industries Corporation, has announced significant strategic transactions to divest two key businesses for a combined enterprise value of $950 million. This initiative is a core component of its ongoing portfolio optimization program, aimed at enhancing returns, focusing on high-margin markets, and improving free cash flow to maximize shareholder value.TheThe first transaction involves the sale of SABIC’s European Petrochemicals (EP) business to AEQUITA for $500 million. This EP business includes manufacturing sites in the UK, Netherlands, Germany, and Belgium, producing various products like ethylene, propylene, and polyethylene. AEQUITA plans to integrate these assets with its existing chemicals platform, seeking synergies and operational improvements.TheThe second divestment sees SABIC selling its Engineering Thermoplastics (ETP) business in the Americas and Europe to MUTARES for $450 million, with potential for further value through an earn-out mechanism. This ETP business manufactures polycarbonate, PBT, and ABS resins at sites across the US, Mexico, Brazil, Spain, and the Netherlands. MUTARES intends to ensure business continuity and unlock the full potential of these assets as a standalone platform.SABIC's leadership, including Chairman Khalid H. Al-Dabbagh and CEO Abdulrahman Al-Fageeh, emphasized that these divestments are crucial steps in reshaping the company's portfolio, enhancing cash generation, and aligning profitability with a value-accretive strategy. Both transactions are subject to customary closing conditions and regulatory approvals, with SABIC committing to seamless transitions and maintaining strong customer relationships.