Lanxess and Saudi Aramco have completed the formation of the companies’ previously announced 50-50 synthetic rubber joint venture, Arlanxeo (Maastricht, Netherlands).
The deal was announced in September 2015 and the jv had received all relevant antitrust approvals by February 2016.
Aramco effectively acquired a 50% stake in Lanxess’s synthetic rubber business, to create Arlanxeo. A 50% share of the jv has been transferred to a Dutch subsidiary of Aramco. Lanxess, in return, has received cash proceeds of about €1.2 billion.
Lanxess says it plans to invest about €400 million of the proceeds from the transaction in organic growth, use €400 million of the proceeds to repay debt, and spend about €200 million on a share buyback program. Forming the jv marks Aramco’s entry into the synthetic rubber industry.
Lanxess chairman Matthias Zachert chairs Arlanxeo’s sharehoders’ committee and Warren Wilder, v.p./chemicals at Aramco is vice chairman of the shareholders’ committee. The committee has two other members. Lanxess and Aramco announced Arlanxeo’s executive team last month.
Arlanxeo is expected to have sales of about €3 billion/year.
By Ian Young
Source: Chemical Week
Sika AG (Baar, Switzerland) has opened a new plant in Santa Cruz de la Sierra, thus doubling its production capacity for mortar and concrete admixtures in Bolivia. With this new facility in one of the country’s main industrial agglomerations, Sika is positioning itself for continued growth in the dynamic Bolivian construction market.
Chevron Corporation (NYSE: CVX) and Renewable Energy Group, Inc. (NASDAQ: REGI) (REG) announced on Monday a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.
Lotte Chemical Corp. will invest 10 trillion won ($8 billion) on hydrogen and battery materials through 2030 to achieve annual revenue of 50 trillion won and carbon neutrality. The Korean chemical producer on Thursday unveiled its new corporate vision outlining key corporate strategies with focus on growth through hydrogen energy and battery materials businesses.