Benzinga - by Lekha Gupta, Benzinga Editor.
LyondellBasell Industries NV (NYSE:LYB) disclosed a deal with Alujain Corporation to acquire a 35% stake in Saudi Arabia–based National Petrochemical Industrial Company (NATPET) for around $500 million.
The technology-enabled JV deal boosts LYB’s access to advantaged feedstocks and attractive markets and positions it to grow and upgrade its core PP business.
The deal is expected to close subject to regulatory and other customary closing conditions.
Together, Alujain and LYB are also assessing potential construction of a new propylene via propane dehydrogenation (PDH) and PP facility at the NATPET site, which is subject to a final investment decision.
The project is currently under study to implement solutions at par with the Kingdom of Saudi Arabia’s 2060 carbon reduction strategy.
Peter Vanacker, CEO said, “This investment in NATPET reflects our strategy of growing and upgrading our core around assets and businesses with lasting advantages.”
“We look forward to advancing our collective efforts to produce and market essential materials that serve our customers’ needs across the globe. This new investment is a great step forward for developing the downstream sector in the Kingdom of Saudi Arabia, and Alujain has plans to drive these developments further.” said Mohammed Bin Saleh AlKhalil, Alujain Chairman.
Also Read: Chemical Company LyondellBasell Plans To Build Advanced Recycling Plant In Germany
As of September 30, LYB had cash and liquid investments of $2.84 billion.
Price Action: LYB shares are trading lower by 0.10% at $94.34 on the last check Tuesday.
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