Shell completes sale of chemicals JV to SABIC for $820m
Shell has completed the sale of 50% interest in its petrochemicals joint venture (JV) SADAF located in Al Jubail, Saudi Arabia, to SABIC in a deal valued at $820m.
Announced in January this year, the sale was completed following anti-trust filings in the relevant countries and regulatory approval from the Saudi Arabian Government.
The divestment is part of Shell’s global value-driven $30bn divestment programme and will enable it to focus on its downstream activities and advance selective investments in its global chemicals business.
Shell’s other activities in Saudi Arabia remain unaffected due to this transaction.
The SADAF JV includes six petrochemical plants that have a combined production of more than four million metric tonnes annually.
SABIC is expected to make additional investments in SADAF and integrate all its activities with its other affiliates.
At the time of announcing the transaction, SABIC CEO and vice-chairman Yousef Al-Benyan said: “With this transaction, SABIC is looking to capitalise on synergy opportunities of SADAF with other affiliates, and improve its operation and profitability.”
The Saudi Arabian Government owns 70% of petrochemicals manufacturer SABIC’s shares, while the remaining 30% is publicly traded on the country’s stock exchange.
The company currently operates in more than 50 countries.