Global chemical leader Saudi Basic Industries Corporation (Sabic) has announced that it has completed the sale of its engineering thermoplastics (ETP) business in the Americas and Europe to Mutares SE & Co, thus marking a key step in its portfolio optimisation strategy.

The transaction was closed yesterday (August 3) after all conditions, including regulatory approvals and carve-out activities, were completed, said Sabic in its filing to Saudi bourse Tadawul.

The company said the divestment would help reduce exposure to structurally underperforming assets, lower cash losses, improve return on capital employed and enhance long-term shareholder value.

Closing the transaction to divest the Engineering Thermoplastics (ETP) business in the Americas and Europe represents a significant step in Sabic’s portfolio optimisation, including the exit from structurally underperforming assets, significantly reducing cash losses, enhancing return on capital employed (ROCE), and ultimately maximizing long-term shareholder value, it stated.

The disposed business posted an operating loss of about SAR1.9 billion ($507 million) in 2025 and a further SAR648 million loss in the first half of 2026, said the chemical leader in the bouse filing.

On a pro forma basis, the carve-out improved Sabic's ebitda margin by around 130-140 basis points, it added.

Sabic said there was no material change to the transaction costs previously disclosed. 

The financial impact of the disposal, including the initial gain or loss, has been recognised in its consolidated financial statements, although the final gain or loss remains subject to customary purchase price and fair value adjustments following completion of the transaction.