BELGIUM: EC okays planned synthetic rubber joint venture between Lanxess and Aramco Overseas

The European Commission (EC) has approved the formation of a new, equally-owned synthetic rubber joint venture between Lanxess and Saudi Aramco's Aramco Overseas Co. subsidiary.

The companies signed an agreement late last year for the venture, valued at €2.75-billion, which will be comprised of Lanxess' Tire & Specialty Rubbers and High Performance Elastomers business units, including 20 production facilities in nine countries and about 3,700 employees.

Saudi Aramco will pay approximately EUR 1.2-billion in cash for its 50% stake, minus debt and other financial liabilities. Also, it will provide the venture with competitive and reliable access to strategic raw materials over the medium term.

A Netherlands-based holding company will manage the new joint venture. Lanxess will appoint the new chief executive and Aramco Overseas will appoint the chief financial officer of the venture. The transaction is expected to close in the first half of this year.

Source: Weekly “PetroChemical News”, Durham, NC, USA; 18 Jan 2016
(Syed Rashid Ali, Karachi, Pakistan)