Specialty chemicals company Lanxess and Saudi Aramco complete the formation of Arlanxeo, the companies’ 50-50 joint venture for synthetic rubber. The deal was first announced in September 2015 and all relevant antitrust authorities cleared the transaction by February 2016, according to Lanxess. With the closing of the transaction, a 50% share in Arlanxeo was transferred to Dutch Saudi Aramco subsidiary, Aramco Overseas Holdings Coöperatief U.A. In return, Lanxess received cash proceeds of around 1.2 billion euros.
Lanxess plans to invest around 400 million euros of the proceeds from the transaction in organic growth, according to the company. Another roughly 400 million euros is earmarked for a further reduction of its financial debt position and around 200 million euros is planned for a share buyback program.
The composition of the company’s Shareholders‘ Committee was also announced. Lanxess Chairman of the Board of Management Matthias Zachert chairs the committee. Warren W. Wilder, vice president chemicals at Saudi Aramco, is vice chairman. Additional members of Arlanxeo’s Shareholders’ Committee are Michael Pontzen, Lanxess chief financial officer and Khalid H. Al-Dabbagh, controller at Saudi Aramco.
For more information, visit: www.lanxess.com
