The Saudi Basic Industries Corporation (Sabic) has agreed to sell its European Petrochemicals business to Aequita and its Engineering Thermoplastics (ETP) business in the Americas and Europe to Mutares, for a total combined enterprise value of $950 million.
The company said the moves are part of its plans to improve returns, focus on high margin markets and products, recycle capital to higher-return opportunities and improve free cash flow.
Abdulrahman Al-Fageeh, Sabic CEO, said the transactions are a continuation of its portfolio optimisation programme which started in 2022 and included previous moves such as the divestment of Functional Forms, Hadeed and Alba.
“This strategic approach allows us to actively reshape our portfolio and sharpen our focus on areas where Sabic has clear and sustainable competitive advantages in a rapidly changing landscape. I am pleased that both Aequita and Mutares will work with us in the future to ensure that we continue to serve our global customers in a seamless manner,’ he said.
The company said the deals are expected to enhance Sabic’s performance, including through increasing overall EBITDA margins, and supporting higher return on capital employed. It said both transactions will allow Sabic to maintain strategic access for its products through exports to both Europe and the Americas, which it said remain priority markets.
Sabic is selling its European Petrochemicals business to Aequita for $500m. The business produces and markets ethylene, propylene, low- and high-density polyethylene (LDPE, LLDPE, and HDPE), polypropylene, and value-added polymer compounds, and manages a number of manufacturing sites, including in Teesside, UK; Geleen, the Netherlands; Gelsenkirchen, Germany; and Genk, Belgium.
Based in Munich, Germany, Aequita is a venture capital and private equity investor and consultant specialising in taking over companies or part of companies to build out the business by capitalising on synergies within the portfolio. Axel Geuer, Aequita’s president and co-CEO, said: ‘This transaction represents a further step in the expansion of our European chemicals platform. The assets are highly synergistic with the olefins and polyolefins business we recently acquired from LyondellBasell (LYB); with complementary markets, infrastructure and operational capabilities, we see substantial potential to realize synergies and drive operational improvements across both businesses.’
In June 2025, Aequita acquired LYB olefins and polyolefins assets and associated business in Europe, located in Berre, France; Münchsmünster, Germany; Carrington, UK; and Tarragona, Spain. Aequita said its acquisition of the European Petrochemicals business supports the “much-needed consolidation” of the European olefins and polyolefins sector. “It will create a platform with a comprehensive product portfolio, expand cross-selling opportunities, and deliver meaningful cost and operational optimization synergies,” the company said, noting that combined, the two businesses are expected to generate $7 billion in revenues.
Sabic’s regional Engineering Thermoplastics (ETP) business in the Americas and Europe is to being acquired by private equity investor Mutares for $450m. In addition, an earn-out mechanism could generate further value to Sabic based on the business’ free cash flow generation over the next four years, as well as in the event of a future sale of the business by Mutares. Mutares focuses on the acquisition of parts of large corporations (carve-outs) and companies in transitional situations.
The ETP business produces polycarbonate (PC), polybutylene terephthalate (PBT), and acrylonitrile butadiene styrene (ABS) resin and compounds, and manages manufacturing sites, including in Mt. Vernon, Ottawa, Bay St. Louis and Burkville in the US and Tampico, Mexico; Campinas, Brazil; Cartagena, Spain; and Bergen op Zoom, the Netherlands.
Robin Laik, Mutares co-founder and CEO, said the ETP business in the Americas and Europe has a highly skilled workforce and strong customer relationships. “Under focused ownership, our priority is to ensure continuity, support employees through the transition, and unlock the full potential of our asset base as a standalone ETP platform.’
Mutares said the planned acquisition represents the largest transaction in its history and will see the establishment of a new strategic segment which it is calling ‘Chemicals & Materials’. Upon closing of the transaction, this new group will comprise the ETP Business as its core platform and will also include Venator Ultramarine Blue Pigments, “further strengthening Mutares’ positioning in specialty chemicals and advanced materials,” the company said.
Mutares said the ETP Business is the world’s second-largest producer of PC, the leading ABS producer in the US and the sole producer of PBT in the US, “underlining its strong competitive position across key engineering thermoplastics categories”. In December 2025, Mutares acquired Venator Pigments France from Venator France. The company is a leading European producer of ultramarine blue, violet and pink pigments, serving applications in plastics, cosmetics, paints and coatings and building materials.
Further reading on the chemical industry:
- UK's last ethylene plant saved with £150 million in new funding
- European chemicals: Seven ways to strengthen the industry investment case
- Chemicals regulation: Scientists call for REACH rethink
- Europe's chemicals industry is in a worrying situation
For over 100 years Chemistry & Industry (C&I) magazine has reported on the scientific advances being harnessed to tackle society's biggest challenges. C&I covers advances in agrifood, energy, health and wellbeing, materials, sustainability and environment, as well as science careers, policy and broader innovation issues. C&I’s readers are scientific researchers, business leaders, policy makers and entrepreneurs who harness science to spark innovation.
Get the latest science and innovation news every month with a subscription to Chemistry & Industry magazine. You can subscribe to C&I here.
Visit Blog