The Saudi Basic Industries Corporation (SABIC) has completed the divestment of its Engineering Thermoplastics (ETP) business in the Americas and Europe to Mutares SE & Co for an enterprise value of $450 million.
Commenting on the announcement, SABIC’s CEO and Executive Board Member Dr. Faisal M. Alfaqeer said: “Portfolio optimization constitutes a key priority for SABIC to sharpen its strategic focus and to achieve long-term growth and sustainable profitability whilst maximizing shareholder returns."
The completion of the divestment of SABIC’s ETP business in the Americas and Europe marks a significant milestone in the company’s portfolio optimization strategy. The transaction supports SABIC’s continued focus on exiting structurally underperforming assets, reducing cash losses, improving Return on Capital Employed, and maximizing long-term shareholder value, SPA reported.
The divested business reported a loss from operations of approximately $498 million (SAR1.9 billion) for the year ended December 31, 2025, and approximately $173 million (SAR648 million) for the six-month period ended June 30, 2026.
On a pro forma basis, the carve-out of the ETP business has improved SABIC’s EBITDA margin by approximately 130–140 basis points, reflecting the positive impact of the transaction on the company’s overall profitability and portfolio quality.
SABIC continues to be committed to serving its customers across the globe, relying on its strong technology and innovation capabilities.
The completion follows SABIC's earlier announcement on January 8, 2026, in which the company highlighted its plan to divest its ETP business in the Americas and Europe. The completion of this transaction had been subject to customary closing conditions and regulatory approvals.
