22 September 2015
DETAILS
LANXESS and Saudi Aramco
plan to establish
a joint venture for synthetic rubber
detailed in an agreement signed today.
LANXESS and Saudi Aramco subsidiary,
Aramco Overseas Company,
will each hold a 50 percent interest in the joint venture,
with annual sales of approximately three billion Euro in 2014.
Saudi Aramco is to pay approx. EUR 1.2 billion in cash
for its 50 percent share after deducting debt and
other financial liabilities.
The total joint venture is valued at EUR 2.75 billion.
The transaction still requires
the approval of the relevant antitrust authorities and
is expected to be completed in the first half of 2016.
LANXESS will contribute its synthetic rubber business
to the new joint venture. This will include
* the Tire & Specialty Rubbers (TSR) and
* the High Performance Elastomers (HPE) business units,
* their 20 production facilities in nine countries and
* some 3,700 employees and additional support staff.
The high-performance rubbers manufactured by LANXESS
are mainly used in
the production of tires and technical applications
such as hoses, belts and seals.
The main customers include
* the automotive and tire industries
but the products are also used in
* the construction industry and
* by oil and gas companies.
Saudi Aramco will provide
the joint venture with competitive and reliable access
to strategic raw materials over the medium term.
CONTACT LANXESS
WWW.CHEMWINFO.COM BY KHUN PHICHAI
