SABIC acquires Huntsman's European base chemicals and polymer business
Mohamed Al-Mady, Vice Chairman and CEO of Saudi Basic Industries Corporation (SABIC) and Peter Huntsman, President and CEO of Huntsman Corporation announced they have agreed terms under which SABIC will acquire 100 per cent of the shares of Huntsman Petrochemicals (UK) Ltd (Huntman's European Base Chemicals and polymers business) for a purchase price of US$ 700 million in cash. After the completion of the deal, SABIC intends to complete the construction of the 400kpta capacity polyethylene (LDPE) plant in Wilton, Teeside at an investment cost of US$150 million.
The acquired manufacturing business operates a 865 ktpa ethylene/ 400 ktpa propylene cracker and 1.3 million tpa Aromatics facilities with elaborate logistical facilities at Wilton and North Tees. The 400 ktpa LDPE plant, which is in the early stages of construction, is scheduled to come on stream by the end of 2007.
Subject to the usual regulatory approvals, including merger control and UK Pension Regulator clearance, the transaction is expected to close by the end of 2006.
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