Sunday, June, 23, 2024 03:54:46

World’s leading integrated energy and chemicals company, Saudi Aramco, and Lanxess AG, a German specialty chemicals firm have recently announced that the companies have completed the Saudi state owned energy firm’s acquisition of Lanxess’ interest in specialty chemicals firm Arlanxeo Holding B.V. Evidently, Arlanxeo is a joint venture between Lanxess and Saudi Aramco which was launched in 2016.

According to reports, all the relevant authorities have granted the approvals needed for this transaction that was first announced in August 2018. The purchase of Lanxess’ 50 percent share in Arlanxeo by Saudi Aramco, on an enterprise value basis, is seemingly valued at €1.5 billion.

This allegedly makes Saudi Aramco the 100 percent owner of Arlanxeo and has further enabled diversification of its downstream portfolio, along with strengthening the capabilities of the company across the chemicals and energy value-chain.

Senior Vice President of Downstream for Saudi Aramco, Abdulaziz Al-Judaimi, mentioned that Arlanxeo, which is now fully owned by Saudi Aramco, represents a crucial component to the company’s global position in the chemicals market.

Al-Judaimi said that the full ownership of Arlanxeo would further diversify the downstream portfolio and strengthen capabilities of Saudi Aramco along the chemicals and energy value chains. He was confident about the upside of the company and the future of product innovation which would serve its customers globally.

Sources familiar with the matter stated that the complete ownership of Arlanxeo would purportedly enhance the sustainability efforts of Saudi Aramco for optimizing fuel consumption related to tire performance. This is aligned with the efficient fuel/engine R&D strategy of the company, focused on reducing engine emissions and increasing fuel efficiency.

Additionally, all these efforts are in line with the overarching downstream aspiration of Saudi Aramco for driving value by integrating and expanding its partnerships and portfolio and creating additional revenue streams, the sources added.