Germany/Saudi Arabia: Transaction Completed Lanxess Completes Sale of Arlanxeo to Saudi Aramco
Lanxess has completed the sale of its remaining 50 % 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.
Cologne/Germany — 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 $ 1.6 billion.
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 $ 3.6 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 was the foundation for the speciality chemicals company’s strategic realignment. Since then the company has been focusing on growth in specialty chemicals markets and made various acquisitions in this area.