Cologne, Germany-based specialty chemicals business Lanxess has sold its remaining 50% interest in rubber company Arlanxeo to Saudi Aramco for approximately €1.4bn (US$1.6bn).
The transaction was announced in August 2018 and all relevant antitrust authorities have granted the necessary approvals.
Arlanxeo was founded on April 1, 2016, as a joint venture between Lanxess and Saudi Aramco. Headquartered in Maastricht, Netherlands, it generated sales of around €3.2bn (US$3.7bn) in 2017 and employs in the region of 3,800 people at 20 production sites in nine countries. Arlanxeo produces high-performance rubber for use in, among others, the automotive and tire, construction, and oil and gas industries.
The transfer of its synthetic rubber business into the joint venture formed the basis of Lanxess’ strategic realignment. Since then, the company has focused on growth in specialty chemicals markets, making various acquisitions in this area. The proceeds of this transaction will enable Lanxess to strengthen its financial base and significantly reduce its net financial liabilities. The company reported sales of €9.7bn (US$11.1bn) in 2017. It has some 15,500 employees in 33 countries and is represented at 59 production sites worldwide.