Lanxess to sell 50% stake in synthetic - Rubber manufacturer Arlanxeo
Recently the speciality chemical group Lanxess, has announced its plans to sell a 50% stake in the synthetic-rubber joint venture (JV) Arlanxeo to its partner Saudi Aramco. The joint venture of these two companies was founded in 2016, now the current value is €3bn.
The deal is expected to be complete by the end of this year and subject to approval from the relevant antitrust authorities. This deal is part of Lanxess’ strategy to boost their financial basis and reduce net financial debt. It is expected that from this deal, Lanxess will receive around €1.4bn in cash after deducting debt and financial liabilities for its 50% share.
Lanxess board of management chairman Matthias Zachert said: “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 speciality chemicals markets. At the same time, we will increase the resilience of our business, strengthen our financial basis and gain additional strategic flexibility for further growth.”
Arlanxeo is a Netherlands based company, in 2017 the company generated sales of around €3.2bn. the company has 20 production sites in nine countries with 3,800 employess. The company produces high-performance rubber for use in the automotive, construction and oil and gas industries.
– Khushboo Pandey,