Press

Lanxess Sells 50% of its Arlanxeo Stakes to Oil Giant Saudi Aramco


The German specialty chemicals industry major Lanxess has recently announced that it is selling its 50% stake in a synthetic-rubber manufacturing company Arlanxeo to its JV partner Saudi Aramco. Reportedly, the two companies that founded the 50:50 synthetic rubber joint venture in 2016 have officially signed the agreement for the sale of the shares.

According to the sources familiar with the details of the transaction, Lanxess sold its 50% stake for over 1.4 billion euros (around USD 1.6 billion) in cash after including the debt and other financial liabilities.

If industry experts are to be believed, the deal marks an early departure for Lanxess from being the world's leading provider of synthetic rubber that was chiefly used in tire applications. The Saudi state oil tycoon, plays a key role in Saudi's Crown Prince's ambition to diversify its economy beyond the oil & gas sector. The deal is further expected to accelerate the growth in the kingdom by leveraging Saudi Aramco's strong feedstock position.

According to Financial Times, following the announcement Lanxess shares climbed more than 4% in the recent trading listings.

Abdulaziz Al Judaimi, Aramco's Senior Vice President of Downstream, was reportedly quoted stating that the purchase of stocks underpins the company's strategy to diversify its downstream portfolio, while also strengthening its capabilities across the entire chemicals and petroleum value chain.

For the record, Aramco is actively planning to boost its investment in petrochemicals & refining to secure new markets and expects the growth in the chemical sector to cut down the growing risk of a downturn in oil demand.

As per trusted sources, Lanxess in its earlier announcement has disclosed that it would keep the remaining 50% of Arlanxeo stakes until at least 2021.

Lanxess announced that the sale is still subject to regulatory approvals and the completion is projected to take place by the year end.


Visit source site

cmferesearch.com/lanxess-arlanxeo-stakes-oil-giant...

chemicals industryoil industryoil gaints

More items from juikate


Shell Bags License To Trade Oil Products In China’s Wholesale Market

Royal Dutch Shell plc (Shell), a renowned European multinational oil & gas company, has reportedly been awarded a trading license by the Chinese government that allows it to independently trade its oil products in China's wholesale market. Reports cite, the license signifies the Chinese government ...

Jui Kate


Posted 2 months agoPress > OilgasBusiness +2

Iran Still Likely To Invest In Refinery Expansion, Says Indian Oil

India's largest oil and gas company Indian Oil Corporation Limited recently said that Iran could still invest in one of its subsidiaries for a refinery expansion project. Sanjiv Singh, chairman of Indian Oil stated that Iran has not ruled out its participation in the development at the Chennai Petr ...

Jui Kate


Posted 2 months agoPress > OilgasOil Refining +2

ContourGlobal sells 49% stake of its Spanish CSP assets for EUR 134M

ContourGlobal is reportedly selling 49 percent stake of company's 250 MW Concentrated Solar Power (CSP) plants in South-West Spain, which they bought from Acciona SA in early 2018. As per the agreement, ContourGlobal will sell 49 percent stake in the Concentrated Solar Power (CSP) Portfolio to Cred ...

Jui Kate


Posted 3 months agoPress > EnergySolar energyPower +1

Allete, Xcel Energy ink new 5-year contract for existing wind farms

Allete Clean Energy, a Minnesota-based independent power producer and supplier, has recently approved a new 5-year power sale agreement between its Viking wind farms in southern Minnesota and Xcel Energy, Inc., whose original 15-year PPAs will expire in December 2018. As per an official press rele ...

Jui Kate


Posted 3 months agoPress > EnergyPowerWind Energy +1

Australian businesses unite to urge government to abort energy policy

Some of the biggest energy & business groups in Australia have reportedly come together in an effort to urge the Australian government to forgo its Big Stick approach in the matter of energy legislation. Apparently, the businesses are warning the government that the divestiture powers it craves wo ...

Jui Kate


Posted 3 months agoPress > EnergyIndustryPower +1
All posts from juikate