A&O Shearman advises SABIC on divesture of petrochemicals and engineering thermoplastics businesses in Europe and the Americas

The divestments will enable SABIC to recycle capital toward higher-return opportunities, improve free cash flow, and focus on core operations, while maintaining strategic access to priority markets in Europe and the Americas.

Under the Engineering Thermoplastics transaction, SABIC agreed to sell its regional ETP business in the Americas and Europe to Mutares for an enterprise value of USD450m, plus an earn-out mechanism that could generate further value to SABIC based on the business’ free cash flow generation over the next four years, as well as in the event of a future sale of the business by Mutares. The ETP business produces polycarbonate (PC), polybutylene terephthalate (PBT), and acrylonitrile butadiene styrene (ABS) resins and compounds, with manufacturing sites across the U.S., Mexico, Brazil, Spain, and the Netherlands. This transaction establishes a focused ETP platform expected to deliver substantial operational and commercial efficiencies.

Under the second transaction, SABIC agreed to sell its EP business to AEQUITA for an enterprise value of USD500m. The EP business produces and markets ethylene, propylene, polyethylene (LDPE and HDPE), polypropylene (PP), and polymer compounds, and operates manufacturing sites in the UK, the Netherlands, Germany, and Belgium. The transaction supports consolidation in the European Olefins and Polyolefins sector and creates a platform for enhanced product offerings and operational synergies.

Said relationship and M&A partner Andrew Schoorlemmer. “This collaboration underscores A&O Shearman’s commitment to guiding clients through complex, cross-border carve-out transactions.”

Both transactions are subject to customary closing conditions and regulatory approvals.

The A&O Shearman team advising SABIC on the ETP business transaction was led by New York-based M&A partner Romain Dambre, alongside associates Hannah Marshall, James Heaney, Yuwei Liu and Roy Ji.

London-based M&A partner Oliver Bacon and senior associate Sam Brooks led the EP business transaction. The team included relationship and M&A partner Andrew Schoorlemmer and associates Jack Keleher and Magali Wade.

The deal teams were also supported by A&O Shearman multidisciplinary teams across multiple jurisdictions, including the U.S., the UK, Germany, the Netherlands, Spain, and Belgium.