Saudi Basic Industries Corporation (SABIC) has completed the sale of its Engineering Thermoplastics (ETP) business in the Americas and Europe to Mutares SE & Co. for an enterprise value of $450 million, marking a major step in its portfolio optimization strategy.

 

The transaction advances SABIC's efforts to streamline its business, exit underperforming assets, strengthen profitability and improve shareholder returns.

 

Commenting on the announcement, Faisal M. Alfaqeer, SABIC’s CEO and Executive Board Member, said: “I am pleased to share that the sale of SABIC’s Engineering Thermoplastics business in the Americas and Europe has been completed. Portfolio optimization constitutes a key priority for SABIC to sharpen its strategic focus and to achieve long-term growth and sustainable profitability whilst maximizing shareholder returns.”

 

The divestment represents a significant milestone in SABIC's transformation strategy, supporting its focus on reducing exposure to structurally underperforming businesses, cutting cash losses, improving Return on Capital Employed (ROCE), and enhancing long-term shareholder value.

 

The divested ETP business posted an operating loss of approximately $498 million (SAR 1.9 billion) for the year ended December 31, 2025, followed by a further operating loss of approximately $173 million (SAR 648 million) during the six months ended June 30, 2026.

 

On a pro forma basis, the carve-out is expected to improve SABIC's EBITDA margin by approximately 130 to 140 basis points, underscoring the positive impact of the transaction on the company's profitability and overall portfolio quality.

 

SABIC said it remains committed to serving customers worldwide through its technology and innovation capabilities despite the divestment.