Saudi Basic Industries Corporation (SABIC) is pressing ahead with a strategic reset, agreeing to sell off two major overseas operations as it sharpens its focus on faster-growing markets.
The company has struck a deal with Germany’s AEQUITA SE & Co. KGaA to transfer full ownership of SABIC Europe BV, valuing the business at 1.88 billion Saudi riyals (around $501 million). SABIC Europe BV houses the group’s European petrochemicals operations, including manufacturing assets spread across the United Kingdom and the Netherlands.
Rather than a traditional cash payout, the transaction will be settled through two perpetual vendor notes. These will be repaid over time from future cash flows generated by the divested business, along with other European olefins and polyolefins assets held by AEQUITA. Completion of this sale is targeted for the fourth quarter of 2026.
In a separate move, SABIC has agreed to sell its Engineering Thermoplastics (ETP) business in the Americas and Europe to German investment firm Mutares. That transaction places an enterprise value of 1.69 billion Saudi riyals on the business, including a cash component of 210 million riyals, and is expected to close in the third quarter of 2026.
SABIC said the two divestments are part of a broader plan to streamline operations, refine its cost base and channel capital toward segments with stronger growth potential. The company aims to lift returns on capital and strengthen long-term cash generation as it reshapes its international portfolio.
