SABIC and Huntsman Corp agree terms of acquisition

5 October 2006

Saudi Basic Industries Corporation (SABIC), one of the world’s 10 largest petrochemicals manufacturers, is set to buy 100 per cent of the shares of Huntsman Petrochemicals (UK) Ltd for $700 million. The acquisition is the latest in SABIC’s bid for a greater presence in the European market, following the integration of DSM’s petrochemical business in 2002.

Huntsman Petrochemicals (UK) Ltd controls an 865 ktpa ethylene/400 ktpa propylene cracker and a 1.3 million tpa aromatics facility with logistical facilities at Wilton and North Tees in the UK.

SABIC will complete the construction of the 400 ktpa capacity polyethylene (LDPE) plant in Wilton, Teesside, which is due to come on stream by the end of 2007. It will also continue to employ Huntsman Petrochemicals (UK) Ltd 830-strong workforce. The transaction is expected to be completed by the end of the year.