European Commission approves SABIC acquisition of DSM Petrochemicals

20-Jun-2002

Riyadh/Heerlen,SA/NL,19 June 2002. The European Commission has approved the takeover of DSM's petrochemical activities by an affiliate of Saudi Arabian Basic Industries Corporation (SABIC). The transfer of the businesses involved is expected to take place by the end of June.

Mohamad Al-Mady, Vice Chairman and Managing Director of SABIC, said: "I am delighted that the EU have given their unconditional approval. This deal makes sound strategic sense for SABIC, providing a strong entry position in the European market, and a springboard for our ambitions to become a sector leader worldwide."

DSM Board Chairman, Peter Elverding, said: "Everything went exactly as planned, which is quite remarkable for a transaction of this magnitude. This has boosted our confidence in the quality of our future partnership with SABIC."

The transaction involves the transfer of all shares of the companies that together form DSM Petrochemicals (DPC), the associated DPC subsidiaries, participations and sales activities, and the related technology positions, patents and trade names. The transaction will take retroactive effect from 1 January 2002. The total consideration of the transaction before closing is EUR 2.250 billion. In total about 2,300 DSM employees will be transferred to SABIC.

This acquisition will move SABIC from 22nd position to 11th position in the global petrochemical industry, and to third and fourth in world polyethylene and polypropylene businesses respectively.

By selling its petrochemicals business DSM realizes a major element of its strategy, formulated at the end of 2000, of developing into a specialty company focusing on advanced biotechnological and chemical products for the life science industry and performance materials (Vision 2005: Focus and Value).

https://www.chemeurope.com/en/news/11468/european-commission-approves-sabic-acquisition-of-dsm-petrochemicals.html