29 May 2007
29 May 2007
GE and Saudi Basic Industries Corporation (SABIC) have reached agreement for SABIC to acquire GE Plastics for a purchase price of $11.6 billion.
Announcement of the acquisition was made by Jeff Immelt, Chairman and CEO of GE and Mohamed Al-Mady, Vice Chairman and CEO of SABIC.
“As a global operating company, SABIC has a long-term, strategic interest in the people, communities, customers, products, plants and technology of GE Plastics,” said Mr. Al-Mady, in making the announcement. “This acquisition represents another important step in SABIC’s growth and diversification to become one of the world’s leading manufacturing companies.”
“This business is complementary to our existing business without any overlaps. SABIC’s intention is to grow the business globally”, he added. “SABIC is well-positioned to do this, while adding high-performance plastics to the product range SABIC currently offers to customers.”
In earlier deals, SABIC has acquired DSM Petrochemicals business in Europe and the Huntsman Petrochemicals business in the UK. In each case, existing management teams continued to manage the business, and have been given SABIC’s support to implement various investment and growth initiatives.
“GE selected SABIC as the winner of this auction both for price as well as the company’s premier position as one the world’s fastest growing, innovative companies,” said Jeff Immelt. “With a strong reputation as a safe, responsible and efficient operator of large, state-of-the-art chemical plants, coupled with a commitment to investment in technology, SABIC is the smart choice to grow the GE Plastics unit.”
GE Plastics manufactures and compounds polycarbonate, ABS, SAN, ASA, PPE, PC/ABS, PBT and PEI resins, as well as the LNP line of high-performance specialty compounds.