SABIC divests petrochemicals and thermoplastics units for $950 million

RIYADH, January 9, 2026 – The Saudi Basic Industries Corporation (SABIC) has signed two deals to sell its European petrochemicals business and its engineering thermoplastics business in Europe and the US to investment firms Aequita and Mutares, respectively, for a total of USD 950 million, SABIC announced on Thursday.

The divestments are part of SABIC’s portfolio optimisation strategy aimed at improving margins, increasing free cash flow and redirecting capital towards higher-return opportunities. The company said it will continue to export products to Europe and the US from the Middle East.

SABIC agreed to sell its European petrochemicals unit to Aequita for USD 500 million. The unit operates manufacturing facilities in the UK, the Netherlands, Germany and Belgium, where it produces ethylene, propylene and value-added polymer compounds, among other products.

The European and US engineering thermoplastics unit, which includes sites in the US, Mexico, Brazil, Spain and the Netherlands, will be sold to Mutares for USD 450 million. The deal includes earn-out provisions based on the cash flow generated in the four years following the transaction and potential proceeds in the event the business is resold.

“These transactions represent a continuation of our portfolio optimisation programme, which started in 2022 and included the divestment of Functional Forms, Hadeed and Alba. This approach allows us to reshape our portfolio and sharpen our focus on areas where SABIC has clear and sustainable competitive advantages in a rapidly changing landscape,” said Abdulrahman Al Fageeh, CEO of SABIC.

Both transactions are subject to customary closing conditions and regulatory approval. SABIC was advised by Goldman Sachs, J.P. Morgan, Lazard, KPMG and A&O Shearman.

SABIC is a global chemicals manufacturer headquartered in Riyadh. It produces petrochemicals, fertilisers and metals, with manufacturing operations across the Middle East, Asia, Europe and the Americas. The company is majority owned by Saudi Aramco and serves customers in more than 100 countries.

Photo of SABIC facility in Geleen, Netherlands courtesy of SABIC

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