Saudi Arabia’s SABIC Agrees to Sell Europe and Americas Units in $950 Million Divestment
Chemicals giant exits European petrochemicals and transatlantic thermoplastics businesses as part of portfolio optimisation amid sector downturn
Saudi Basic Industries Corporation (SABIC), majority-owned by Saudi Aramco, has agreed to divest its European petrochemicals business and its Engineering Thermoplastics operations in Europe and the Americas for a combined enterprise value of $950 million, in a strategic move to refocus on higher-growth and higher-margin areas of its global operations.
The agreements, announced on Thursday, involve the sale of SABIC’s European Petrochemicals (EP) segment to Munich-based investment firm AEQUITA for $500 million and the sale of its Engineering Thermoplastics (ETP) business to German industrial investor Mutares SE & Co KGaA for $450 million.
Closing of the transactions is expected in the second and third quarters of 2026 once customary conditions are met.
The EP business includes key manufacturing facilities and associated commercial assets in the United Kingdom and Germany, while the ETP unit operates plants in Canada, the United States, Brazil and Spain.
The divestments form part of SABIC’s broader portfolio optimisation programme in response to persistent weak demand and oversupply in the global chemicals sector, which has pressured margins and returns on capital across legacy petrochemical operations.
SABIC said the sales will enhance its overall profitability, improve cash flow generation and allow it to concentrate resources on core strategic areas.
SABIC’s stock price fell sharply in Riyadh trading following the announcement, touching its lowest level in nearly 17 years, as investors weighed the news amid broader market pressures.
The company has been undertaking a series of restructuring actions, including previous divestments, as it manages through shifting industry dynamics and adjusts its footprint to align with long-term performance objectives.
Advisors on the transactions included Goldman Sachs and J.P. Morgan for their respective segments, with independent counsel provided by Lazard.
The agreements, announced on Thursday, involve the sale of SABIC’s European Petrochemicals (EP) segment to Munich-based investment firm AEQUITA for $500 million and the sale of its Engineering Thermoplastics (ETP) business to German industrial investor Mutares SE & Co KGaA for $450 million.
Closing of the transactions is expected in the second and third quarters of 2026 once customary conditions are met.
The EP business includes key manufacturing facilities and associated commercial assets in the United Kingdom and Germany, while the ETP unit operates plants in Canada, the United States, Brazil and Spain.
The divestments form part of SABIC’s broader portfolio optimisation programme in response to persistent weak demand and oversupply in the global chemicals sector, which has pressured margins and returns on capital across legacy petrochemical operations.
SABIC said the sales will enhance its overall profitability, improve cash flow generation and allow it to concentrate resources on core strategic areas.
SABIC’s stock price fell sharply in Riyadh trading following the announcement, touching its lowest level in nearly 17 years, as investors weighed the news amid broader market pressures.
The company has been undertaking a series of restructuring actions, including previous divestments, as it manages through shifting industry dynamics and adjusts its footprint to align with long-term performance objectives.
Advisors on the transactions included Goldman Sachs and J.P. Morgan for their respective segments, with independent counsel provided by Lazard.
