Saudi Basic Industries Corporation (SABIC) has signed two major divestment deals, agreeing to sell its European Petrochemicals business to AEQUITA and its Engineering Thermoplastics business in the Americas and Europe to MUTARES in transactions valued at a combined enterprise value of $950 million.
The moves mark a significant acceleration of SABIC’s portfolio optimization strategy as the company sharpens its focus on higher-margin businesses and reallocates capital to drive stronger returns and cash flow. The divestments are designed to strengthen SABIC’s long-term strategic positioning while reinforcing its ability to generate value across its global operations.
The transactions continue SABIC’s multi-year effort to improve returns by concentrating on markets and products where it holds a clear competitive advantage, while recycling capital into higher-return opportunities. The company said the sales will not affect its commitment to technology, innovation, or customer service worldwide.
Commenting on the transactions, Chairman of the Board of Directors of SABIC Khalid H Al-Dabbagh, 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”.
Chief Executive Officer Abdulrahman Al-Fageeh said the divestments build on SABIC’s ongoing Portfolio Optimization Program, launched in 2022. “These transactions represent a continuation of our Portfolio Optimization Program, which started in 2022 and included previous actions, such as the divestment of Functional Forms, Hadeed and Alba.
"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”.
Al-Fageeh added: “I am pleased that both AEQUITA and MUTARES will work with us in the future to ensure that we continue to serve our global customers in a seamless manner.”
Chief Financial Officer Salah Al-Hareky said the transactions reflect SABIC’s disciplined capital allocation and active portfolio management.
“These transactions are a clear demonstration of our disciplined approach and decisive execution regarding capital allocation and active portfolio management. 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.”
SABIC said the divestments will support improved financial performance by lifting EBITDA margins, strengthening free cash flow generation, and driving higher returns on capital employed. The company will continue to prioritize Europe and the Americas as key markets, maintaining strategic product access through exports.
The company also emphasized that its global leadership in research, advanced technology, and innovation will remain intact, ensuring continued customer service excellence and long-term sustainable growth.
