LANXESS and Saudi Aramco establish joint venture for synthetic rubber business
Specialty chemicals company LANXESS and Saudi Arabian Oil Company (Saudi Aramco), the world’s largest integrated energy enterprise establish a joint venture for synthetic rubber. Both companies have signed a corresponding agreement today.
The partners will each hold 50 percent of the joint venture. The operational control will be assumed by LANXESS.
The enterprise value for the entire joint venture totals EUR 2.75 bn. Saudi Aramco acquires a 50 percent stake and will pay around EUR 1.2 bn in cash adjusted for debt and payables for this stake. LANXESS contributes its entire synthetic rubber business consisting of the business units Tire & Specialty Rubbers and High Performance Elastomers to the joint venture.
The rubber business will gain direct access to the strategic important raw materials for its synthetic rubber business, thus sustainably improving its competitive positioning.
LANXESS plans to use the proceeds from this transaction for future growth, the reduction of debt and a share buy-back.
The transaction is subject to approval of the relevant antitrust authorities. Closing of the transaction is expected for H1 2016.
Forward-Looking Statements
This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
