Cologne. Germany – Lanxess expects the sale of its 50% stake in Arlanxeo to joint venture partner Saudi Aramco to complete as planned by 31 Dec.
“All necessary approvals from the anti-trust authorities have been obtained. Therefore, we are fully on track for a closing by the end of this year,” Lanxess said in a 3 Dec written statement to ERJ.
Both parties have contractually agreed to close the deal on 31 Dec, stated the German partner, adding: “This is the date we are aiming at so do not expect anything earlier.”
In August, Lanxess announced plans to exit the 50:50 Arlanxeo JV – founded through the 2016 sale of a 50% stake in its synthetic rubber business to Saudi Aramco for around €1.2 billion. The venture was then valued at €2.75 billion.
With the Arlanxeo JV now valued at €3.0 billion, Lanxess said it expected to receive around €1.4 billion in cash after deducting debt and other financial liabilities for its 50% share.
In establishing Arlanxeo, the two partners originally agreed on a lock-up period until 2021 for the JV.
Headquartered in Maastricht, The Netherlands, Arlanxeo generated 2017 sales of around €3.2 billion.
The venture employs about 3,800 people at 20 production sites worldwide, producing synthetic rubber for industries including automotive, tires, construction and oil & gas.