Lanxess to sell its 50% stake in Arlanxeo to Saudi Aramco

State-run Saudi Aramco will acquire a 50 percent stake owned by Lanxess in Netherlands-based Arlanxeo, the specialty chemicals joint venture, which was launched by both firms in 2016, the Saudi oil producer said in a statement on Wednesday.

The deal, valued at 1.5 billion euros on an enterprise value basis, will boost Saudi Aramco’s ownership in Arlanxeo to 100 percent, diversify its downstream portfolio, enhance its capabilities across the entire petroleum and chemicals value-chain and complement the company‘s fuel/engine R&D strategy.

The proposed acquisition has been approved by both boards of Lanxess and Aramco, and will be finalized by Dec. 31, 2018, after obtaining regulatory approvals. 

“The proposed purchase underscores Saudi Aramco’s strategy to further diversify our downstream portfolio and strengthen our capabilities across the entire petroleum and chemicals value chain. Notably the acquisition will accelerate our  growth into C4-based chemicals including butadiene and isobutylene,” said Abdulaziz Al-Judaimi, Senior Vice President of Downstream.

When the acquisition is completed, Arlanxeo would continue to serve the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber products, principally for the high-volume global tire and automotive industries. Arlanxeo’s head office will remain in Maastricht, the Netherlands.