Saudi Aramco announced on Monday that it became the full owner of Arlanxeo Holding B.V., a Netherlands-based specialty chemicals joint venture with German Lanxess.
The purchase of Lanxess' 50 percent share in Arlanxeo, valued at €1.5 billion on an enterprise value basis, enables further diversification of the Saudi state-run integrated energy and chemicals company’s downstream portfolio, and strengthens the company’s capabilities across the energy and chemicals value-chain, a statement read.
The transaction was initially announced in August 2018.
A separate press release from Lanxess said the German specialty chemicals company received proceeds of approximately €1.4 billion.
According to Saudi Aramco's statement, Arlanxeo, as a fully owned subsidiary, will accelerate development of growth opportunities integrating the strong feedstock position of the Saudi giant.
"In addition, full ownership of Arlanxeo will enhance Saudi Aramco's sustainability efforts to optimize 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," it said.
"All of these efforts are well-aligned with Saudi Aramco's overarching downstream aspiration to drive value by expanding and integrating its portfolio and partnerships, as well as creating additional revenue streams," it added.
Launched in 2016, Arlanxeo will continue to serve the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber products, principally for the high-volume global tire and automotive industries, the statement concluded.
The company will maintain its current base in Maastricht, the Netherlands.
By Hale Turkes