With the acquisition, valued at €1.5 billion ($1.72 billion), Aramco becomes the full owner of the company, a joint venture between Saudi Aramco and Lanxess, launched in 2016.
All relevant authorities have granted approvals for the transaction which was first announced in August 2018, said an Aramco statement.
Saudi Aramco’s purchase of Lanxess' share makes it 100 per cent 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 tyre 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, it said.
In addition, full ownership of Arlanxeo will enhance Saudi Aramco’s sustainability efforts to optimize 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.
Abdulaziz Al Judaimi, Saudi Aramco senior VP of Downstream, said: "Arlanxeo, now as a 100 per cent-owned Saudi Aramco subsidiary, represents an essential component to our global position in the chemicals market."
"Full ownership of Arlanxeo will further diversify Saudi Aramco’s downstream portfolio and strengthen capabilities along the energy and chemicals value chains. I am positive about the upside and the future of product innovation that will serve our customers around the world," he added.
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.
Source Link: www.tradearabia.com