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SABIC mulls acquiring OCI NV’s $4bn methanol assets

SABIC mulls acquiring OCI NV’s $4bn methanol assets
SABIC mulls acquiring OCI NV’s $4bn methanol assets
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Riyadh – Mubasher: Saudi Basic Industries Corp (SABIC) is considering the acquisition of methanol assets owned by Netherlands-based OCI NV, according to informed sources.

After SABIC’s initial approach valued assets at $4 billion, the sources told Bloomberg News on Tuesday.

The Dutch firm’s assets, which may be dominated by SABIC, include BioMCN, OCI Beaumont, along with a 50% stake in the US-based Natgasoline.

The potential transaction is part of SABIC’s efforts to boost its global expansion in a bid to meet the higher demand for chemicals, especially methanol.

OCI NV, which owns assets in Netherlands and the US, stated that negotiations may not lead to an agreement.

SABIC and OCI declined to comment on negotiations.

SABIC last reported a 16.87% increase in net profits after calculating Zakat and Tax to 21.54 billion during 2018, from SAR 18.43 billion in 2017.

The Tadawul-listed firm’s earnings levelled down 12.43%, reaching SAR 3.24 billion by the end of the fourth quarter of 2018, compared to SAR 3.7 billion in Q4-17.

By 3:01 pm Saudi time, SABIC's stock levelled down 0.49% to SAR 122.