Saudi Aramco and LANXESS announced Saudi Aramco’s proposed acquisition of LANXESS‘s interest in ARLANXEO, a Netherlands-based specialty chemicals joint venture between Saudi Aramco and LANXESS launched in 2016. LANXESS’s 50 % share in ARLANXEO is valued at €1.5 billion on an enterprise value basis. According to Saudi Aramco, the proposed acquisition is key to the company’s strategy to become the world’s foremost integrated energy and chemicals company.
ARLANXEO is a world-class synthetic rubber and elastomer products company that supplies leading tire and auto-parts to manufacturers around the globe. Under Saudi Aramco’s 100 % ownership, 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 would maintain its current base in Maastricht, the Netherlands.
The proposed transaction has been approved by the Boards of Directors of both Saudi Aramco and LANXESS. Subject to the receipt of all regulatory approvals and consultation with the competent employee representative bodies, Saudi Aramco and LANXESS are targeting December 31, 2018, for the completion of the transaction.
- Saudi Aramco, Dhahran, Saudi Arabia
- LANXESS, Cologne, Germany