Saudi Arabia’s SABIC has agreed to sell its European petrochemical business and its Engineering Thermoplastics business in Europe and the Americas for a combined enterprise value of US$950 million, as part of a restructuring during an industry slowdown.

Shares in the chemicals company fell as much as 4.8% at 48.2 riyals (US$12.85) per share in early trade in Riyadh on Thursday, touching the lowest level in nearly 17 years. The stock has lost 26.4% in the last 12 months.

SABIC has agreed to divest its European petrochemical (EP) business, which includes manufacturing sites in the United Kingdom and Germany, to Munich-based investment firm AEQUITA for an enterprise value of US$500 million.

It is also selling the ETP business in the Americas and Europe to German holding company Mutares at an enterprise value of US$450 million. The business operates manufacturing sites in Canada, the United States, Brazil and Spain.

Source: theedgemalaysia