Apr 16 2002
Sabic has reached an agreement to acquire the DSM Petrochemical (DPC) business for 2.25 billion Euros. Half of this amount will be due when the deal is complete, the balance 4.5 years later.
The deal is expected to be closed by about June 30, but Sabic’s ownership will be back dated to January 1, 2002.
The deal involves the transfer of all shares that comprise the comprise DPC, the associated DPC participations and sales activities, related technologies, patents and trade names. It also represents a step forward in Sabic’s strategy to become a leading player in the global petrochemicals field. Sabic, is the largest petrochemical manufacturer in the middle east, will use the DPC acquisition as a door into the European market.
DSM will use revenue from the sale of DPC to fund acquisitions in the area if specialty chemicals, in line with its corporate strategy.