The Clap
The Saudi company “Alujain” (2170) has signed an agreement to sell 35% of its subsidiary, the “National Petrochemical Industrial Company (NATPET),” to the “Basell International Holdings.”
This is in exchange for approximately SAR 1.87 billion (around USD 500 million).
What
The “massive sale agreement,” subject to regulatory approvals, is part of the strategic partnership between “Alujain” and “Basell,” a subsidiary of “LyondellBasell Industries” listed on the New York Stock Exchange.
The first company hopes that this partnership will contribute to achieving the goals of the energy sector, in line with the “Vision 2030” of the Kingdom.
So What
The partnership includes Basell entering as a new shareholder as a strategic partner in NATPET and as a strategic partner and investor in the development of Alujain’s complex (a company under development). The estimated cost of this is approximately SAR 7.5 billion (USD 2 billion).
Now What
“Alujain” stated that it expects the agreements signed with “Basell,” including the sale of shares, product marketing and sales, and the management of the new project, to enhance its current expansion plans for its products. These include high-quality polypropylene and strategically specialized polypropylene compounds of high value.
The company aims to support specialized national transformative industries, enhance its global competitiveness, and sustain its operations through these initiatives.
