LANXESS TO SELL ITS SHARE IN ARLANXEO TO SAUDI ARAMCO

Date: Sep 2nd  2018   Copy editor: Tyrefull

Lanxess plans to sell its entire stake in ARLANXEO to its partner , Saudi Aramco. Both companies owned 50:50 stake on the joint venture, which was established in  2010.

According the Lanxess, the total joint venture ARLANXEO is valued at EUR 3 billion and Lanxess expects to get aroundEUR 1.4 billion in cash aftr deducting debt and other financial liabilities fir its 50% share. The speciality chemicals company plans to use the proceeds to strengthen its financial basis and reduce net financial debt.

The parties expect to complete the envisaged transaction by the end of 2018.

The transaction is still subject to approval of the relevant antitrust authorities. At the same time, information or consultation of the competent employee representative bodies will take place.

Originally, Lanxess and Saudi Aramco agreed on a lock-up period until 2021 for both partners. “With the envisaged transaction we would complete another important milestone of our strategic transformation earlier than originally planned. This should allow us to even better focus on our position as a leading player in mid-sized specialty chemicals markets,” said Matthias Zachert, Chairman of the Board of Management. “At the same time, we increase the resilience of our business, strengthen our financial basis and gain additional strategic flexibility for further growth.“

Headquartered in Maastricht, Netherlands, ARLANXEO generated sales of around EUR 3.2 billion in 2017 and employs about 3,800 people at 20 production sites in nine countries. The company produces high-performance rubber for use in, for example, the automotive and tire industries, the construction industry, and the oil and gas industries.

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