Specialty chemicals group Lanxess plans to sell its remaining 50 percent stake in Arlanxeoto its joint venture partner Saudi Aramco. The two companies, that founded Arlanxeo in 2016 as a 50:50 joint venture for synthetic rubber, signed a respective agreement today.The transaction is still subject to approval of the relevant antitrust authorities. At the same time, information or consultation of the competent employee representative bodies will take place. The parties expect to complete the envisaged transaction by the end of 2018.
The total joint venture Arlanxeo is valued at EUR 3.0 billion. Lanxess expects to receive approximately EUR 1.4 billion in cash after deducting debt and other financial liabilities for its 50 percent share.
Lanxess plans to use the proceeds to strengthen its financial basis and reduce net financial debt.
Originally, Lanxess and Saudi Aramco agreed on a lock-up period until 2021 for both partners. "With the envisaged transaction we would complete another important milestone of our strategic transformation earlier than originally planned. This should allow us to even better focus on our position as a leading player in mid-sized specialty chemicals markets," said Matthias Zachert, Chairman of the Board of Management. "At the same time, we increase the resilience of our business, strengthen our financial basis and gain additional strategic flexibility for further growth."
Source: Lanxess
