Riyadh - Mubasher: Saudi Basic Industries Corporation (SABIC) inked two strategic transactions to divest its European Petrochemicals (EP) business to AEQUITA and its Engineering Thermoplastics (ETP) business in the Americas and Europe to MUTARES.

With a total combined enterprise value of $950 million, these transactions mark significant steps in the advancement of SABIC’s strategy to back portfolio optimization program, according to a press release.

The divestments pave the way for a strong foundation for future profitable growth and reinforce the company’s long-term strategic positioning for maximum value added.

Khalid H. Al-Dabbagh, Chairman of SABIC, said: “The board endeavored to achieve these transactions, which represent a significant milestone in the execution of our strategy to further optimize our portfolio and maximize shareholder value by enhancing the company’s cash generation capacity and achieving the highest possible return on our global businesses.”

Abdulrahman Al Fageeh, CEO of SABIC, mentioned: “This strategic approach allows us to actively reshape our portfolio and sharpen our focus on areas where SABIC has clear and sustainable competitive advantages in a rapidly changing landscape.”

Salah Al Hareky, Chief Financial Officer of SABIC, indicated: “By unlocking value to fund higher-return opportunities, we are improving the quality and efficiency of our capital employed and enhancing the group’s ROCE over time. Together, these actions position SABIC to deliver sustainable returns and create value for our shareholders.”

Subject to regulatory approvals, the transactions reposition SABIC for longer-term success by refocusing financial resources and management attention towards growth areas where the Company has clear competitive advantages.

Alongside the buyers, SABIC will maintain business continuity, customer service excellence, and the highest standards of safety, reliability and compliance throughout the transition and beyond for both divestments.  

In the first nine months (9M) of 2025, SABIC turned to net losses valued at SAR 4.84 billion, compared to net profits of SAR 3.43 billion in 9M-24.