SABIC to acquire DSM's petrochemicals business
DSM and Sabic, the largest petrochemicals producer in the Middle East, have reached an agreement in principle on the purchase of DSM's petrochemicals business by SABIC. The transaction involves the transfer of all shares of the companies that together form DSM Petrochemicals (DPC), the associated DPC participations and sales activities, and the related technology positions, patents and trade names. After the closing, the transaction will take retroactive effect from 1 January 2002. DSM and SABIC expect the closing to take place around 30 June 2002.
The total consideration of the transaction is EUR 2.250 billion; half of this amount will be paid upon closing and the other half 4.5 years after the closing. As from the closing, DSM will account for the net revenue of the sale based on its Net Present Value.
DSM has asked the Works Councils involved to give their advice on this proposed transaction in accordance with legal requirements. Where required the trade unions have also been informed. The transaction requires the approval of the European Commission and may also have to be notified to competition authorities outside the European Union.
DSM was supported in the transaction process by Credit Suisse First Boston. SABIC was advised by JP Morgan Chase.
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