Saudi "SABIC" Exits Assets in Europe and the Americas Worth 3.6 Billion Riyals

SadaNews - The Saudi Basic Industries Corporation (SABIC) has completed two separate deals to exit from industrial assets in Europe and the Americas, aiming to simplify operations and focus on higher growth activities and markets, as part of its strategy to enhance operational efficiency and maximize value for shareholders.

According to disclosures published by SABIC on the Saudi Stock Exchange "Tadawul", the first deal involved the sale of 100% of SABIC's petrochemical operations in Europe, while the second deal included a complete exit from the thermoplastic engineering operations in North America, South America, and Europe.

The total value of the two deals amounted to approximately 3.56 billion riyals, comprising 1.86 billion riyals for the sale of the petrochemical business in Europe and 1.7 billion riyals for the sale of the thermoplastic engineering operations, through direct sales structures to European operational and investment entities.

These two deals are part of SABIC's initiative to improve its business portfolio by reallocating capital towards higher growth and return activities, and exiting low-yield operations, thereby contributing to increasing the return on invested capital, improving profit margins and free cash flows, and enhancing the financial position's flexibility in the long term.

From an accounting perspective, the divested assets will be classified as discontinued operations according to international accounting standards. SABIC is expected to record total non-cash accounting losses of approximately 18.3 billion riyals in the results for the fourth quarter of 2025, including 10.8 billion riyals related to the exit from European petrochemical operations and 7.5 billion riyals arising from the sale of thermoplastic engineering operations, based on the fair revaluation of the net assets to be transferred.