Riyadh: The Saudi Basic Industries Corporation (SABIC) has successfully completed the divestment of its Engineering Thermoplastics (ETP) business in the Americas and Europe to Mutares SE and Co for an enterprise value of $450 million. This strategic move aligns with the company's broader goals of optimizing its portfolio for enhanced growth and profitability.

According to Saudi Press Agency, SABIC's CEO and Executive Board Member, Dr. Faisal M. Alfaqeer, emphasized the importance of portfolio optimization in the company's strategy to achieve sustainable profitability and maximize shareholder returns. The completion of the divestment represents a significant milestone in SABIC's efforts to focus on its core competencies and exit underperforming assets.

The divested ETP business had reported operational losses of approximately $498 million (SAR1.9 billion) for the year ending December 31, 2025, and around $173 million (SAR648 million) for the six months ending June 30, 2026. The transaction is expected to enhance SABIC's financial metrics, particularly improving its EBITDA margin by approximately 130-140 basis points on a pro forma basis.

SABIC remains committed to serving its global customer base by leveraging its strong capabilities in technology and innovation. The completion of this transaction follows an earlier announcement by SABIC on January 8, 2026, regarding its intention to divest the ETP business. The process was subject to customary closing conditions and regulatory approvals, which have now been fulfilled.