SABIC has agreed to sell parts of its European and international petrochemicals portfolio for a combined enterprise value of $950 million, as it accelerates restructuring efforts amid a prolonged global chemicals downturn.
The company will divest its European petrochemical business—including manufacturing sites in the UK and Germany—to Munich-based investment firm AEQUITA for $500 million. In a separate transaction, SABIC will sell its Engineering Thermoplastics (ETP) business in Europe and the Americas to German holding group Mutares for $450 million. The ETP unit operates facilities in Canada, the United States, Brazil, and Spain.
The announcement weighed on SABIC’s shares, which fell as much as 4.8% in early trading in Riyadh, touching their lowest level in nearly 17 years. The stock has declined 26.4% over the past 12 months, reflecting pressure across the global chemicals sector from weak demand and compressed margins.
SABIC said the divestments are part of an ongoing portfolio optimization program launched in 2022, aimed at exiting lower-return businesses and sharpening focus on core chemical operations. The group is 70% owned by Saudi Aramco, which has also been tightening capital allocation amid lower oil prices and rising shareholder payouts.
The company expects the transactions to improve core profit margins and strengthen free cash flow, while ensuring a smooth operational separation. Goldman Sachs advised SABIC on the European petrochemicals sale, J.P. Morgan advised on the ETP deal, and Lazard acted as independent financial adviser on both transactions.
