EC approves Sabic's acquisition of DSM petchem business

19 June 2002 09:47  [Source: ICIS news]

Mohamad Al-Mady

LONDON (CNI)--The acquisition of DSM's petrochemical operations by Saudi Arabian Basic Industries Corp (Sabic) has been cleared by the European Commission (EC), it was announced on Wednesday.

Sabic, which agreed in April to pay Euro2.25bn ($2.13bn) for the assets, said transfer of the businesses involved is expected to take place by the end of this month and the transaction will take effect retroactively from 1 January 2002.

Mohamad Al-Mady, vice chairman and managing director of Sabic, said: "I am delighted that the EU have given their unconditional approval. This deal makes sound strategic sense for Sabic, providing a strong entry position in the European market, and a springboard for our ambitions to become a sector leader worldwide."

DSM chairman Peter Elverding commented: "Everything went exactly as planned, which is quite remarkable for a transaction of this magnitude. This has boosted our confidence in the quality of our future partnership with Sabic."

The transaction involves the transfer of all shares of the companies that together form DSM Petrochemicals (DPC), the associated DPC subsidiaries, participations and sales activities, and the related technology positions, patents and trade names. About 2300 DSM employees will be transferred to Sabic.

The acquisition will move Sabic from 22nd to 11th position in the global petrochemical industry, and to third and fourth in world polyethylene (PE) and polypropylene (PP) businesses respectively.

By: Neil Sinclair
+44 20 8652 3214

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