SABIC divests specialty engineering plastics business in Europe, Americas

This came after fulfilling all closing conditions, including obtaining the required regulatory approvals and completing all separation activities.

In a Tadawul filing, SABIC said the transaction marks a key milestone in its portfolio optimization strategy, which includes exiting structurally underperforming assets, significantly reducing cash losses, enhancing return on invested capital and creating long-term shareholder value.

The divested business recorded operating losses of approximately SAR 1.9 billion for 2025, and around SAR 648 million for the six months ended June 30, 2026.

SABIC added that separating the business improved its pro forma EBITDA margin by approximately 130 to 140 basis points.

The financial impact of the transaction, including the preliminary gain or loss on disposal, has been reflected in its consolidated financial statements in accordance with applicable accounting standards.

The recognized gain or loss remains preliminary and is subject to customary fair value adjustments during the applicable measurement period.

The two parties will continue to complete customary post-closing settlement procedures and purchase price adjustment mechanisms in line with the sale and purchase agreement.