My watch list
my.chemeurope.com  
Login  

LANXESS plans to sell remaining 50 percent stake in joint venture ARLANXEO

Joint venture valued at EUR 3.0 billion

09-Aug-2018

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.

 

Facts, background information, dossiers
More about Lanxess
  • News

    LANXESS wins Responsible Care competition 2019 of German Chemical Industry Association (VCI)

    Specialty chemicals company LANXESS received on September 26 the first prize in the nationwide Responsible Care competition from the German Chemical Industry Association (VCI). The company submitted the project “Resource-efficient manufacturing of leather chemicals” (ReeL). Responsible Care ... more

    LANXESS inaugurates high-tech plastics plant in China

    Specialty chemicals company LANXESS officially inaugurated its new plant in Changzhou, China, on September 25, 2019. The compounding facility produces Durethan- and Pocan-branded high-tech plastics, especially for the automotive sector and the electrical and electronics industry. “This faci ... more

    LANXESS to sell its chrome chemicals business

    Specialty chemicals company LANXESS is selling its chrome chemicals business to Brother Enterprises, a Chinese leather chemicals producer. Both companies signed a respective agreement. The transaction is still subject to approval by the relevant antitrust authorities. LANXESS expects to com ... more

  • Companies

    LANXESS Deutschland GmbH

    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 Sybron Chemicals Inc.

    LANXESS Sybron Chemicals Inc., provides world-class ion exchange resins to meet the needs of numerous applications. The global strength of Lewatit ion exchange resins in industrial water and chemical processing markets is joined with the solid position Ionac ion exchange resins enjoy in the ... more

    LANXESS S.A.

    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

More about Aramco
Your browser is not current. Microsoft Internet Explorer 6.0 does not support some functions on Chemie.DE