{"id":103924,"date":"2026-01-11T00:00:00","date_gmt":"2026-01-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/?p=103924"},"modified":"2026-01-11T05:24:54","modified_gmt":"2026-01-11T05:24:54","slug":"sabics-western-divestment","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/","title":{"rendered":"Sabic\u2019s western divestment"},"content":{"rendered":"

Sabic is slimming down its business, agreeing to sell its <\/strong>European petrochemicals<\/a><\/strong> and <\/strong>Engineering thermoplastics<\/a><\/strong> (ETP) units in a SAR 3.6 bn (USD 950 mn) divestment.<\/strong> Sabic will sell the European petrochemicals unit to international investment firm AEQUITA<\/a> and ETP to Germany\u2019s Mutares. The divestments are the latest step in a multi-year effort to reshape its portfolio, the company said in separate filings to the bourse on Thursday.<\/p>\n

\n

Shedding unprofitable units<\/p>\n

A steep accounting cost:<\/strong> As it pulls back from structurally challenged markets in Europe and the Americas, Sabic is offloading the assets far below their book value, booking a combined noncash impairment of SAR 18.3 bn in 4Q 2025. The European petrochemicals unit, carried at SAR 12.5 bn, will take a SAR 10.8 bn write-down, while the ETP business, valued at SAR 16.7 bn, will add a SAR 7.5 bn loss.<\/p>\n

And the buyers got favorable terms: <\/strong>The SAR 1.9 bn sale of the European petrochemical business will be settled via \u201cperpetual vendor notes,\u201d meaning that Sabic is financing the acquisition for AEQUITA, with repayment tied to future cashflows. The SAR 1.7 bn ETP sale offers limited immediate liquidity, with just SAR 210 mn paid upfront and the remainder tied to performance-based earn-outs, payable only if buyer Mutares succeeds in turning the business around.<\/p>\n

\n

Why this matters<\/p>\n

The divestments are part of a portfolio optimization program launched in 2022<\/strong>, which has already seen Sabic exit Functional Forms, Hadeed, and Alba as it seeks to strengthen core margins and unlock cashflow. By shedding lower-return Western assets, Sabic \u2014 which is 70% owned by Saudi Aramco \u2014 is doubling down on its core: high-return chemical operations. This portfolio restructuring also aligns with Aramco\u2019s broader push to cut costs and streamline assets amid more volatile energy and chemicals markets.<\/p>\n

What\u2019s next: <\/strong>The European petrochemicals transaction is expected to close in 4Q 2026, while the ETP divestment is targeted for completion in 3Q 2026. With Hadeed, Alba, and now its Western plastics units off the books, Sabic\u2019s next pruning target<\/a> is the National Industrial Gases Company. The company confirmed it is still evaluating strategic options for the unit, including a potential IPO.<\/p>\n

Sabic\u2019s shares slid as much as 4.8% to hit their lowest level in nearly 17 years at SAR<\/strong> 48.2 apiece following the news of the divestment<\/strong>, according to Reuters<\/a>. The stock pared back losses by the end of the session, closing up 0.49% at SAR 50.9, market data shows.<\/p>\n

ADVISORS: <\/strong>Goldman Sachs acted as advisor on the European petrochemicals sale, while JPMorgan advised on the ETP divestment, with Lazard serving as independent financial advisor on both transactions.<\/p>\n","protected":false},"excerpt":{"rendered":"

The divestment will see Sabic take on a noncash loss of SAR 18.3 bn in 4Q<\/p>\n","protected":false},"author":1,"featured_media":103925,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4693],"tags":[10,138,4063,4692],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-103924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-enterpriseam-ksa","tag-sabic","tag-saudi-chemical-company-holding","tag-the-big-story-today","wpautop","entry"],"acf":{"mongo_id":"4bcb8327-8925-4104-a45b-1600ea9e4f3d","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/11\/320.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Sabic sheds western assets in SAR 3.6 bn divestment","related_issue":[103919],"teaser":"The divestment will see Sabic take on a noncash loss of SAR 18.3 bn in 4Q"},"yoast_head":"\nSabic\u2019s western divestment - KSA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sabic\u2019s western divestment\" \/>\n<meta property=\"og:description\" content=\"The divestment will see Sabic take on a noncash loss of SAR 18.3 bn in 4Q\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/\" \/>\n<meta property=\"og:site_name\" content=\"KSA\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-11T00:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-11T05:24:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Sabic\u2019s western divestment\",\"datePublished\":\"2026-01-11T00:00:00+00:00\",\"dateModified\":\"2026-01-11T05:24:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/\"},\"wordCount\":423,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1\",\"keywords\":[\"EnterpriseAM KSA\",\"SAbic\",\"Saudi Chemical Company Holding\",\"THE BIG STORY TODAY\"],\"articleSection\":[\"THE BIG STORY TODAY\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/\",\"url\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/\",\"name\":\"Sabic\u2019s western divestment - KSA\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2026-01-11T00:00:00+00:00\",\"dateModified\":\"2026-01-11T05:24:54+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/ksa\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Sabic\u2019s western divestment\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#website\",\"url\":\"https:\/\/enterpriseam.com\/ksa\/\",\"name\":\"KSA\",\"description\":\"The State of the Nation\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/ksa\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#organization\",\"name\":\"KSA\",\"url\":\"https:\/\/enterpriseam.com\/ksa\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/42482.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/42482.svg\",\"caption\":\"KSA\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\",\"name\":\"enterpriseam admin\",\"sameAs\":[\"http:\/\/enterpriseam.testing.projectsarea.com\"],\"url\":\"https:\/\/enterpriseam.com\/ksa\/author\/enterpriseam\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Sabic\u2019s western divestment - KSA","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/","og_locale":"en_US","og_type":"article","og_title":"Sabic\u2019s western divestment","og_description":"The divestment will see Sabic take on a noncash loss of SAR 18.3 bn in 4Q","og_url":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/","og_site_name":"KSA","article_published_time":"2026-01-11T00:00:00+00:00","article_modified_time":"2026-01-11T05:24:54+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"Sabic\u2019s western divestment","datePublished":"2026-01-11T00:00:00+00:00","dateModified":"2026-01-11T05:24:54+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/"},"wordCount":423,"publisher":{"@id":"https:\/\/enterpriseam.com\/ksa\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1","keywords":["EnterpriseAM KSA","SAbic","Saudi Chemical Company Holding","THE BIG STORY TODAY"],"articleSection":["THE BIG STORY TODAY"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/","url":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/","name":"Sabic\u2019s western divestment - KSA","isPartOf":{"@id":"https:\/\/enterpriseam.com\/ksa\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1","datePublished":"2026-01-11T00:00:00+00:00","dateModified":"2026-01-11T05:24:54+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/11\/sabics-western-divestment\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/ksa\/"},{"@type":"ListItem","position":2,"name":"Sabic\u2019s western divestment"}]},{"@type":"WebSite","@id":"https:\/\/enterpriseam.com\/ksa\/#website","url":"https:\/\/enterpriseam.com\/ksa\/","name":"KSA","description":"The State of the Nation","publisher":{"@id":"https:\/\/enterpriseam.com\/ksa\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/enterpriseam.com\/ksa\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/enterpriseam.com\/ksa\/#organization","name":"KSA","url":"https:\/\/enterpriseam.com\/ksa\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/logo\/image\/","url":"https:\/\/ent.news\/internal\/42482.svg","contentUrl":"https:\/\/ent.news\/internal\/42482.svg","caption":"KSA"},"image":{"@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d","name":"enterpriseam admin","sameAs":["http:\/\/enterpriseam.testing.projectsarea.com"],"url":"https:\/\/enterpriseam.com\/ksa\/author\/enterpriseam\/"}]}},"featured_image_src":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?resize=600%2C600&ssl=1","author_info":{"display_name":"enterpriseam admin","author_link":"https:\/\/enterpriseam.com\/ksa\/author\/enterpriseam\/"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/320.jpg?fit=%2C&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts\/103924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/comments?post=103924"}],"version-history":[{"count":1,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts\/103924\/revisions"}],"predecessor-version":[{"id":103951,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts\/103924\/revisions\/103951"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/issue\/103919"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/media\/103925"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/media?parent=103924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/categories?post=103924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/tags?post=103924"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/brand?post=103924"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=103924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}