Billions of petrochemicals
3 Apr 2002
Sabic, the largest petrochemicals producer in the Middle East, is to purchase DSM's petrochemicals business. The transaction involves the transfer of all shares of the companies that together form DSM Petrochemicals as well as technology, patents and trade names.
DSM and Sabic expect the closing to take place around June 30 2002. After the closing, the transaction will take retroactive effect from January 1 2002.
The total consideration of the transaction is EUR 2.25 billion - half of this amount will be paid upon closing and the other half 4 1/2 years after the closing.
The acquisition will move Sabic from 22nd position to 11th position in the global petrochemical industry, and will establish the company as the third and fourth global player in the polyethylene and polypropylene businesses, respectively.
In 2001, DSM Petrochemicals generated sales of EUR 2.4 billion. It annually sells about 2.6 million tonnes of polymers, mainly in Europe.
Sabic employs about 14,500 people worldwide, most of whom are based in Saudi-Arabia. In 2001, Sabic posted sales of approximately SR 29 billion (EUR 8.9 billion) and a net profit of approx. SR 1.8 billion (EUR 550 million).
The transaction requires the approval of the European Commission and may also have to be notified to competition authorities outside the European Union.
