Chemicals firm Lanxess completes $1.3bn sale to Saudi Aramco
Aramco has bought out the Cologne-based Lanxess's 50% share in rubber firm Arlanxeo
Specialist chemicals company Lanxess has completed the sale of its 50% interest in rubber company Arlanxeo to Saudi Aramco for approximately $1.6bn.
According to a statement by Lanxess, its remaining stake in Arlanxeo, founded on 1 April, 2016, as a joint venture between the Cologne-based firm and Saudi Aracmo, has already been transferred to the Saudi state-owned oil and gas giant.
With the sale, Lanxess added, it has strengthened “its financial base and significantly reduce its net financial liabilities”. Relevant authorities have granted the necessary approvals for the transaction, which was announced in August 2018.
Arlanxeo generated sales of roughly $3.7bn in 2017, employing about 3,800 people at 20 production sites in nine countries. The high-performance rubber that it produces is used in the construction, oil and gas, and automotive and tire industries.
The news comes in a busy month for the Saudi Arabian oil and gas behemoth. The kingdom’s Crown Prince HRH Mohammed Bin Salman unveiled the Aramco-backed King Salman Energy Park on 10 December, 2018.
Located between Dammam and Al-Ahsa in Saudi’s Eastern Province, the Spark megaproject is a three-phase hub for energy, industrialisation, and technology that will report Phase 1 completion in 2021.
Phase 1 spans 12km2, with investments totalling $1.6bn (SAR6bn).
Aramco’s Long-Term Agreement (LTA) programme has also seen significant activity over the past two months. Dutch marine contractor Royal Boskalis Westminster joined the scheme at the end of November, followed shortly by Malaysia’s Sapura Energy, and most recently by Malaysia Marine and Heavy Engineering Holdings Berhad, on 27 December, 2018.