LANXESS completes sale of ARLANXEO to Saudi Aramco
- Cologne-based company received proceeds of around EUR 1.4 billion
Specialty chemicals company LANXESS today, December 31, 2018, completed the sale of its remaining 50 percent interest in the rubber company ARLANXEO to Saudi Aramco. All relevant antitrust authorities have granted the necessary approvals for the transaction announced in August 2018.
Upon completion of the transaction, the remaining stake of the specialty chemicals company in ARLANXEO was transferred to the former joint venture partner Saudi Aramco. In return, LANXESS received proceeds of approximately EUR 1.4 billion. With the transaction proceeds LANXESS strengthens its financial base and significantly reduces its net financial liabilities.
ARLANXEO was founded on April 1, 2016, as a joint venture of LANXESS and Saudi Aramco. The company headquartered in Maastricht, Netherlands, generated sales of around EUR 3.2 billion in 2017 and employs about 3,800 people at 20 production sites in nine countries. The company produces high-performance rubber for use in, for example, the automotive and tire industries, the construction industry, and the oil and gas industries. The transfer of the business with synthetic rubber into the joint venture ARLANXEO was the foundation for LANXESS’ strategic realignment. Since then LANXESS has been focusing on growth in specialty chemicals markets and made various acquisitions in this area.
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.
