SABIC Sells European Petrochemicals and ETP Businesses for $950 Million
Saudi Basic Industries Corporation (SABIC) is divesting its European petrochemicals business to AEQUITA for $500 million and its Engineering Thermoplastics (ETP) business in the Americas and Europe to Mutares SE & Co KGaA for $450 million, totaling $950 million. These sales, expected to close by Q4 2026, are part of SABIC's strategy to optimize its portfolio, enhance return on capital employed (ROCE), improve cash flow, and focus on high-growth markets amid a petrochemicals industry downturn.
Saudi Basic Industries Corporation (SABIC) has announced two significant divestments, totaling $950 million, as part of a strategic portfolio optimization. The first deal involves selling 100% of SABIC Europe B.V., which comprises its European Petrochemicals business and assets, to Germany-based AEQUITA for an enterprise value of $500 million. This transaction includes production facilities in the United Kingdom, Netherlands, Germany, and Belgium, and is anticipated to close in the fourth quarter of 2026. Concurrently, SABIC will divest its entire Engineering Thermoplastics (ETP) business in the Americas and Europe to Mutares SE & Co KGaA, another German operational investor, for $450 million, with this closing expected in the third quarter of 2026. SABIC states these sales are driven by a need to improve its return on capital employed (ROCE), boost profit margins, and enhance future cash flows. The company highlighted the ongoing petrochemicals industry downturn, characterized by oversupply and low margins, as a key factor in shedding low-return operations to pivot towards higher-growth markets and ultimately maximize long-term shareholder value.
