State-owned oil giant Saudi Aramco has completed the acquisition of remaining 50% stake in a Netherlands-based specialty chemicals joint venture ARLANXEO Holding for €1.5 billion ($1.72 billion).
Saudi Aramco purchased Germany’s LANXESS’s 50% share in ARLANXEO, on an enterprise value basis, makes it 100% owner of ARLANXEO, enabling further diversification of Saudi Aramco’s downstream portfolio, and strengthening the company’s capabilities across the energy and chemicals value-chain.
All relevant authorities have granted approvals for the transaction which was first announced in August 2018.
ARLANXEO is a world-class synthetic rubber and elastomer products company that supplies feedstocks to leading tire and auto-parts manufacturers around the globe.
ARLANXEO as a fully owned subsidiary of Saudi Aramco will accelerate development of growth opportunities integrating the strong feedstock position of Saudi Aramco.
In addition, full ownership of ARLANXEO will enhance Saudi Aramco’s sustainability efforts to optimize tire performance-related fuel consumption in line with its efficient fuel/engine R&D strategy, which is focused on increasing fuel efficiency and reducing engine emissions, According to a statement
All of these efforts are well-aligned with Saudi Aramco’s overarching downstream aspiration to drive value by expanding and integrating its portfolio and partnerships, as well as creating additional revenue streams.
"ARLANXEO, now as a 100% owned Saudi Aramco subsidiary, represents an essential component to our global position in the chemicals market. Full ownership of ARLANXEO will further diversify Saudi Aramco’s downstream portfolio and strengthen capabilities along the energy and chemicals value chains. I am positive about the upside and the future of product innovation that will serve our customers around the world”, said Abdulaziz Al-Judaimi, Saudi Aramco Senior Vice President of Downstream.
ARLANXEO will continue to serve the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber products, principally for the high-volume global tire and automotive industries.