LONDON (ICIS)--LANXESS is to sell its remaining 50% stake in ARLANXEO, the company’s joint venture with Saudi Aramco, to its partner for an expected €1.4bn, the German company announced on Wednesday.
The synthetic rubber joint venture is valued at €3.0bn.
LANXESS will receive approximately €1.4bn for its 50% stake after deducting debt and other financial liabilities.
The company said it plans to use the proceeds to strengthen its financial basis and reduce net financial debt.
“With the envisaged transaction we would complete another important milestone of our strategic transformation earlier than originally planned," said LANXESS' CEO Matthias Zachert.
"This should allow us to even better focus on our position as a leading player in mid-sized specialty chemicals markets.”