Sabic to Exit International Petrochemicals, Plastics Businesses in Portfolio Optimization Push

04:24 AM EST, 01/08/2026 (MT Newswires) -- Saudi Basic Industries (SASE:2010), d/b/a Sabic, will divest its overseas petrochemicals and engineering thermoplastics businesses in separate deals valuing the assets at a combined 3.57 billion Saudi riyals, according to a Thursday release. Sabic Europe, the petrochemicals business, will be sold to Aequita for 1.88 billion riyals. The transaction, to be settled entirely through two perpetual vendor notes, will include facilities engaged in the production and marketing of ethylene, propylene, low- and high-density polyethylene, polypropylene, and value-added polymer compounds in the UK, the Netherlands, Germany, and Belgium. The deal is expected to close in the fourth quarter of 2026, subject to regulatory approvals, completion of a consultation process with the employee representatives' body, waiver of change of control termination rights for certain material contracts, and finalization of agreed capital expenditure projects. Separately, Sabic will offload its engineering thermoplastics operations in the Americas and Europe to German private equity holding company Mutares (MUX.F) for an enterprise value of 1.69 billion riyals. The targeted division manufactures and markets polycarbonates, polybutylene terephthalates, and acrylonitrile butadiene styrenes from assets in the US, Mexico, Brazil, Spain, and the Netherlands. The Saudi petrochemicals manufacturer will receive 210 million riyals as upfront cash, along with a minimum earnout of 262.5 million riyals, payable at the earlier of four years after the second anniversary of closing or exit. The agreement is slated for completion in the third quarter, pending regulatory approvals and a consultation process. Sabic expects to record non-cash losses of 10.8 billion riyals and 7.5 billion riyals, respectively, in its fourth-quarter 2025 results following the deconsolidation of the businesses. Through both disposals, Sabic intends to focus on its core chemical operations in high-growth markets, streamline its cost structure, and scale back exposure to challenged regions, in line with its portfolio optimization strategy.