SABIC has completed the divestment of its ETP business in the Americas and Europe to Mutares SE & Co, in a transaction valued at $450 million on an enterprise basis. The acquisition marks the establishment of a new strategic segment, “Chemicals & Materials”. The company will operate under the new name NexPoint Materials in the future.
Portfolio optimization drives the divestment
According to SABIC, the completed transaction marks a milestone in the Company’s portfolio optimization strategy, supporting its continued focus on exiting structurally underperforming assets, reducing cash losses, improving Return on Capital Employed (ROCE), and maximizing long-term shareholder value.
Commenting on the announcement, Dr. Faisal M. Alfaqeer, SABIC’s CEO and Executive Board member, said, “I am pleased to share that the sale of SABIC’s Engineering Thermoplastics business in the Americas and Europe has been completed. Portfolio optimization constitutes a key priority for SABIC to sharpen its strategic focus and to achieve long-term growth and sustainable profitability whilst maximizing shareholder returns.”
The divested business reported a loss from operations of approximately $498 million (SAR 1.9 billion) for the year ended December 31, 2025, and approximately $173 million (SAR 648 million) for the six-month period ended June 30, 2026. On a pro forma basis, SABIC states the carve-out has improved its EBITDA margin by approximately 130 to 140 basis points, reflecting the transaction’s effect on overall profitability and portfolio quality.
SABIC states it remains committed to serving customers worldwide, drawing on its technology and innovation capabilities. The completed transaction follows SABIC’s announcement on January 8, 2026, outlining plans to divest its ETP business in the Americas and Europe. Completion of the sale was subject to customary closing conditions and regulatory approvals.