Saudi Aramco has completed the acquisition of LANXESS‘s interest in ARLANXEO Holding B.V., a Netherlands-based specialty chemicals joint venture that Saudi Aramco and LANXESS launched in 2016.
Saudi Aramco’s purchase of LANXESS’s 50 percent share in ARLANXEO, valued at €1.5bn on an enterprise value basis, makes it 100 percent owner of ARLANXEO, enabling further diversification of Saudi Aramco’s downstream portfolio, and strengthening the company’s capabilities across the energy and chemicals value-chain.
ARLANXEO is a world-class synthetic rubber and elastomer products company that supplies feedstocks to leading tire and auto-parts manufacturers around the globe. As a fully owned subsidiary of Saudi Aramco, ARLANXEO will accelerate development of growth opportunities integrating the strong feedstock position of Saudi Aramco.
In addition, full ownership of ARLANXEO will enhance Saudi Aramco’s sustainability efforts to optimise tire performance-related fuel consumption in line with its efficient fuel/engine R&D strategy, which is focused on increasing fuel efficiency and reducing engine emissions. All of these efforts are well-aligned with Saudi Aramco’s overarching downstream aspiration to drive value by expanding and integrating its portfolio and partnerships, as well as creating additional revenue streams.
As a wholly-owned subsidiary of Saudi Aramco, ARLANXEO will continue to serve the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber products, principally for the high-volume global tire and automotive industries. ARLANXEO will maintain its current base in Maastricht, the Netherlands.
For more information visit www.saudiaramco.com
7th January 2019