Micah Jonah
January 8, 2026
Saudi Basic Industries Corporation (SABIC) has agreed to sell assets across Europe and the Americas worth a combined enterprise value of 950 million dollars, as the petrochemicals giant continues to restructure amid weak global demand.
The company said it will divest its European petrochemicals business to Munich based investment firm AEQUITA for 500 million dollars. The unit includes manufacturing facilities in the United Kingdom and Germany.
SABIC will also sell its Engineering Thermoplastics business in Europe and the Americas to German holding company Mutares for 450 million dollars. That business operates production sites in Canada, the United States, Brazil and Spain.
Shares in SABIC fell as much as 4.8 percent in early trading in Riyadh, touching their lowest level in nearly 17 years. The stock has lost more than 26 percent of its value over the past 12 months.
The divestments come as the global chemicals industry grapples with weak demand, prompting major producers to shed lower return assets and refocus on core operations. SABIC is 70 percent owned by Saudi Aramco, which has also been cutting costs, selling assets amid lower oil prices and high shareholder payouts.
“These transactions represent a continuation of our portfolio optimization programme that began in 2022,” Chief Executive Abdulrahman Al Fageeh said, adding that earlier divestments included Functional Forms, Hadeed and Alba.
SABIC said the latest asset sales are expected to improve core profit margins and boost free cash flow, while ensuring minimal disruption to ongoing operations.
Goldman Sachs advised SABIC on the European petrochemicals transaction, while JPMorgan advised on the Engineering Thermoplastics deal. Lazard acted as independent financial adviser on both transactions.
