A&O Shearman, Noerr and Travers Smith advise on SABIC’s USD 950 million divestments of European Petrochemicals and Engineering Thermoplastics businesses to AEQUITA and Mutares.
Saudi Basic Industries Corporation (SABIC) has entered into two separate agreements to divest its European petrochemicals and engineering thermoplastics businesses to AEQUITA and Mutares, respectively, for a combined enterprise value of approximately USD 950 million. The divestments form part of SABIC’s strategy to recycle capital towards higher-return opportunities, strengthen free cash flow and sharpen its focus on core operations, while maintaining strategic access to priority markets in Europe and the Americas.
Under the first transaction, SABIC has agreed to sell its European petrochemicals business to AEQUITA for an enterprise value of USD 500 million. The business operates manufacturing sites across the UK, the Netherlands, Germany and Belgium and generates approximately USD 3.5 billion in annual revenues. Separately, SABIC has agreed to divest its engineering thermoplastics business in the Americas and Europe to Mutares for an enterprise value of USD 450 million, together with an earn-out mechanism linked to future free cash flow generation and a potential onward sale. Both transactions are subject to customary regulatory approvals and closing conditions and are expected to complete by the end of 2026.
A&O Shearman advised SABIC on both divestments. The engineering thermoplastics transaction was led by Partner Romain Dambre, with Associates Hannah Marshall, James Heaney, Yuwei Liu and Roy Ji. The European petrochemicals transaction was led by Partner Oliver Bacon and Senior Associate Sam Brooks, with Partner Andrew Schoorlemmer and Associates Jack Keleher and Magali Wade.
Noerr advised AEQUITA on its acquisition of SABIC’s European petrochemicals business. The Noerr team was led by Partners Christoph Thiermann and Jan-Philipp Meier.
Travers Smith advised AEQUITA on the English law aspects of the transaction, working alongside Noerr. The team was led by Partners Tom Hartwright and Jonathan Walters, with Associate Will Rann. Competition and foreign direct investment advice was provided by Partner Ingrid Hodgskiss and Senior Associate Tom Davies, while tax advice was provided by Partner Madeline Gowlett.
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