SABIC Said to be Seeking Acquisitions
Saudi Arabian chemical giant SABIC is seeking acquisitions to strengthen its fertilizer business and could announce a deal in the chemicals and polymers sectors by the end of the third quarter, its acting chief executive, Yousef Abdullah Al-Benyan, told the news agency Reuters. Al-Benyan said the fertilizer purchases would be outside Saudi Arabia would focus on ammonia, urea and specialty urea products.
He said SABIC is also evaluating whether to sell some of its assets in its polymers and specialty business, with a decision expected by the end of the year. Any divestments would most likely take place in Asia and the US.
In October 2015, Al-Benyan announced a corporate reorganization that he said would focus the company’s resources more intensively on the needs of each business line, following a trend embraced by Western chemical conglomerates in the past.
In particular, he said SABIC has realized that the different technology priorities of commodity and specialty businesses are different. Without commenting on specific plans, the acting CEO said the shift in priorities would require technology acquisitions and partnerships or joint ventures,
