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Saudi SAFCO acquires agri-nutrients business from SABIC

November 20/2020

MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC) said on Thursday it had agreed to sell its agri-nutrients business to Saudi Arabia Fertilizers Co (SAFCO), in which it owns a 43% stake, reported Reuters.

SAFCO will finance the acquisition by issuing 59.4 million shares, valued at 10 riyals each, to SABIC, raising the fertilizer groups overall share capital by 14.25% to 4.76 billion riyals (USD1.27 bln).

The deal is a clear strategic attempt to create a national champion and a global leader in agrinutrients, SABIC Chief Executive Yousef al-Benyan told reporters in a virtual press conference.

SABIC had been seeking to consolidate its various holdings in companies specializing in agri-nutrient, or fertilizer, production, and signed a preliminary deal with SAFCO to divest the resulting combined business in Nov. 2018.

After the acquisition the business will take the name SABIC Agri-nutrient Investments.

The deal would allow SABIC to focus on its expansion in petrochemical products, and SAFCO to become more specialised in fertilisers and phosphate.

SABIC, the worlds fourth-largest chemicals company, which is 70% owned by oil giant Saudi Aramco, is looking to divest businesses seen as non-core.

The new company will become the investment arm for SABIC on agribusiness and will create more synergies on assets, Benyan said.

As MRC informed previously, in early November, 2020, SABIC announced that BOPP film based on the companys certified circular PP from feedstock recycling of used plastics will be introduced in primary pet food brand packaging by Mars.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PP random copolymer, BOPP films, fertilizers, petrochemistry, packaging, Sabic, Russia, Saudi Arabia.
Category:General News
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