Specialty chemicals group LANXESS 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, signed a respective agreement.
The transaction is still subject to approval of the relevant antitrust authorities. At the same time, information or consultation of the competent employee representative bodies will take place. The parties expect to complete the envisaged transaction by the end of 2018.
The total joint venture ARLANXEO is valued at EUR 3.0 billion. LANXESS expects to receive approximately EUR 1.4 billion in cash after deducting debt and other financial liabilities for its 50 percent share.
LANXESS plans to use the proceeds to strengthen its financial basis and reduce net financial debt.
Originally, LANXESS and Saudi Aramco agreed on a lock-up period until 2021 for both partners. “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.“
Headquartered in Maastricht/Netherlands, ARLANXEO generated sales of around EUR 3.2 billion in 2017 and employs about 3,800 people at 20 production sites in nine countries. The company produces high-performance rubber for use in, for example, the automotive and tire industries, the construction industry, and the oil and gas industries.
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 has been focusing on growth in mid-sized specialty chemicals markets and made various acquisitions in this area – with the takeover of the U.S. chemical company Chemtura in 2017 as the biggest one.
LANXESS extends contract with CEO Matthias Zachert
At its ordinary meeting, the Supervisory Board of LANXESS AG appointed Matthias Zachert (55) as CEO of the Group for a further five years, thus extending his contract. The new mandate will begin on April 1, 2024. “Matthias Zachert has decisively transformed LANXESS in just a few years: A ma ... more
Frederique van Baarle assumes position on the LANXESS Board of Management
Frederique van Baarle has taken up her position as a member of the Board of Management and Labor Director at Cologne-based specialty chemicals company LANXESS effective April 1, 2023. Until the end of March van Baarle headed the High Performance Materials business unit at LANXESS, which was ... more
LANXESS increases sales and earnings significantly in fiscal year 2022
In an environment characterised by many upheavals, LANXESS closed fiscal year 2022 successfully. The specialty chemicals company’s sales and earnings have increased significantly. Group sales amounted to EUR 8.088 billion in 2022, up 32.6 percent on the previous year’s figure of EUR 6.101 b ... more
LANXESS is a leading specialty chemicals company and operates in all important markets of the world. Its core business comprises the development, manufacture and sale of high-tech plastics, high-performance rubber, specialty chemicals and intermediates. In addition, it helps its customers i ... more
LANXESS is a specialty chemicals enterprise at the core of the chemical industry that focuses on premium businesses. To this end LANXESS employs an expert workforce with a multitude of different skills – worldwide. The LANXESS corporate philosophy is applied to our products as well as to t ... more
LANXESS is listed as the fourth largest German Chemistry Corporation in the Frankfurt Stock Exchange. With our extensive portfolio we are active in all the markets of the world. Our product pallet ranges from base, specialty and fine chemicals to plastics and rubbers. In addition, we sup ... more
Aramco and Linde Engineering to develop ammonia cracking technology
Aramco and Linde Engineering announced that they have signed an agreement to jointly develop a new ammonia cracking technology. The collaboration between the two companies will combine Linde Engineering and Aramco’s experience and capabilities in industrial research and development, lower-c ... more
Aramco affiliate S-OIL to build one of the world's largest petrochemical crackers in South Korea
Aramco is making its biggest ever investment in South Korea to develop one of the world's largest refinery-integrated petrochemical steam crackers through its S-OIL affiliate, in line with the company's strategy to maximize the crude to chemicals value chain. The $7 billion Shaheen project ... more
Saudi Aramco advances global chemicals strategy with S-Oil expansion project in Ulsan, South Korea
Saudi Aramco is advancing its global chemicals growth strategy with the inauguration of S-Oil’s new Residue Upgrading Complex and Olefin Downstream Complex. The new facilities feature the latest refinery technologies, which have raised S-Oil’s petrochemical portion from 8% to 13% and includ ... more
