Saudi Aramco completed the acquisition of Dutch chemicals company Arlanxeo Holding by buying out the remaining 50 per cent interest from German partner Lanxess.
The purchase is valued at €1.5 billion on an enterprise value basis, Saudi Aramco said in a statement, aimed to further diversify Aramco’s downstream portfolio and boost its energy and chemicals value-chain.
Abdulaziz Al-Judaimi, Saudi Aramco senior vice president of Downstream, said Arlanxeo as a fully-owned company “represents an essential component to our global position in the chemicals market. I am positive about the upside and the future of product innovation that will serve our customers around the world."
Arlanxeo is a synthetic rubber and elastomer products company that supplies feedstocks to leading tire and auto-parts manufacturers around the globe.
As a fully owned subsidiary of Saudi Aramco, Arlanxeo will accelerate development of growth opportunities integrating the strong feedstock position of Saudi Aramco.
Aramco said the full ownership of Arlanxeo will support the company’s sustainability efforts to optimise tire performance-related fuel consumption in line with its efficient fuel/engine R&D strategy, which is focused on increasing fuel efficiency and reducing engine emissions.
Arlanxeo will maintain its current base in Maastricht, the Netherlands.