SAUDI ARABIA: Saudi petchems company Sabic eyes up acquisitions in 2016

One of the world’s largest petrochemical manufacturers, Saudi Basic Industries Corporation, or Sabic, will make “at least one acquisition” next year, according to its chief executive.

Yousef Al Benyan, acting vice chairman and chief executive of the Riyadh-based company, said on Thursday (19 Nov 2015) that Sabic was planning to announce the potential additions to its core market early in 2016. “I can tell you that [we are evaluating] between two to four companies in North America and China,” he said, declining to expand on the types of companies being looked at.

“All options are open as long as those potential targets fit with the strategy either in our core products – specifically technology – we are willing to go after it,” said Al Benyan. Sabic’s goal is to take advantage of the current market volatility, triggered by the drop in oil prices, which has threatened the industry as margins tighten.

Al Benyan said that the Gulf Cooperation Council (GCC) petrochemical industry had to improve its competitiveness with the rising threat of US producers and increasing self-sufficiency of China.

Source: Daily “The National”, Abu Dhabi; 19 Nov 2015
(Syed Rashid Ali, Karachi, Pakistan)