LANXESS, specialty chemicals group plans to sell its remaining 50 percent stake in ARLANXEO to its joint venture partner Saudi Aramco.
The two companies, that founded ARLANXEO in 2016 as a 50:50 joint venture for synthetic rubber, have signed a respective agreement.
Subject to approval of the relevant antitrust authorities, the parties expect the transaction to be complete by the end of 2018.
The total joint venture, ARLANXEO is valued at €3.0 billion (approximately £2.7 billion) and LANXESS expects to receive approximately €1.4 billion (£1.26 billion) in cash after deducting debt and other financial liabilities for its 50 percent share.
“With the envisaged transaction we would complete another important milestone of our strategic transformation earlier than originally planned. This should allow us to even better focus on our position as a leading player in mid-sized specialty chemicals markets,” said Matthias Zachert, Chairman of the Board of Management.
“At the same time, we increase the resilience of our business, strengthen our financial basis and gain additional strategic flexibility for further growth.”
Back in 2016, the transfer of the business with synthetic rubber into the joint venture ARLANXEO was the foundation for LANXESS’ strategic realignment.
Since then LANXESS says it has been focusing on growth in mid-sized specialty chemicals markets and made various acquisitions in this area.