Aramco, Lanxess complete joint venture deal

Saudi Arabian Oil Co. (Saudi Aramco) has launched its 50-50 joint venture for synthetic rubber with specialty chemicals company Lanxess.

The $3.1 billion new entity—Arlanxeo-- will develop, produce, market, sell and distribute synthetic rubber used in the global tire industry, auto-parts manufacturing and other applications.

Through the joint venture, the company is investing in a world-class synthetic rubber and elastomer products capability that already supplies many of the world’s tire and automotive parts manufacturing customers, Aramco said in a statement.

The deal was first announced in September 2015 and all relevant antitrust authorities cleared the transaction by February 2016, according to Lanxess. With the closing of the transaction, a 50 percent share in Arlanxeo was transferred to Dutch Saudi Aramco subsidiary, Aramco Overseas.