AEQUITA’s SABIC Europe Takeover Moves Into EU Merger Review

AEQUITA’s proposed purchase of SABIC’s European petrochemicals business has entered the European Union’s merger review process, bringing the transaction another step closer to completion. If approved, the deal would help create a major European olefins and polyolefins platform spanning eight production locations.

The transaction comes as Europe’s petrochemical industry continues to undergo structural changes amid weak margins, high energy and operating costs, subdued demand and increasing competition from imports. For AEQUITA, the deal would also build on its recent expansion through the acquisition of four former LyondellBasell sites.

European Commission Begins Review

The European Commission received notification of AEQUITA’s proposed acquisition of SABIC Europe on September 3, according to an EU filing published on September 11.

Registered as case M.12513, the transaction would give Germany-based AEQUITA sole control of SABIC Europe. The deal has been identified as a candidate for the Commission’s simplified merger procedure.

The regulatory review represents an important stage in the transaction, which was initially announced in January. SABIC has previously indicated that the deal is expected to close in the fourth quarter of 2026, subject to regulatory clearance and other customary conditions.

Four SABIC Production Sites Included

Under the agreement, AEQUITA would acquire SABIC’s European petrochemical operations at:

Geleen, Netherlands
Gelsenkirchen, Germany
Genk, Belgium
Teesside, UK

The business employs approximately 1,900 people and generates around $3.5 billion in annual revenue.

Its operations cover key sections of the petrochemical value chain, including ethylene, propylene, LDPE, LLDPE, HDPE, PP and value-added polymer compounds.

The transaction has an enterprise value of $500 million and forms part of SABIC’s wider strategy to improve returns and optimize its global asset portfolio by reducing exposure to lower-return operations.

AEQUITA Expands Its European Petrochemical Presence

The SABIC transaction would significantly increase AEQUITA’s presence in European petrochemicals following its earlier acquisition of selected LyondellBasell assets.

In May, LyondellBasell completed the sale of its European olefins and polyolefins assets to AEQUITA after receiving regulatory clearance. The deal included facilities in Berre, France; Münchsmünster, Germany; Carrington, the UK; and Tarragona, Spain.

Adding SABIC’s four locations would bring AEQUITA’s European petrochemical footprint to eight sites across six countries, covering olefins, polyethylene, polypropylene and downstream polymer compounds.

Combined Platform Could Generate $7 Billion in Revenue

Together, the SABIC and former LyondellBasell assets are expected to form a European petrochemical platform generating approximately $7 billion in annual revenue.

The combined scale would bring together established production assets previously operated by two major global petrochemical companies. AEQUITA could therefore have a broader network across which to pursue operating, commercial and procurement synergies.

The expanded footprint would extend from the UK and France through Germany and the Benelux region to Spain, covering several major European petrochemical and polymer markets.

European Petrochemical Ownership Continues to Shift

The transactions form part of a wider restructuring of Europe’s petrochemical sector. Weak operating rates, elevated production costs and competition from lower-cost capacity in the US, Middle East and Asia have encouraged major producers to reassess their European operations.

Both SABIC and LyondellBasell have described their European asset sales as part of broader efforts to optimize their portfolios and improve returns.

While global producers are becoming more selective about their European assets, AEQUITA is expanding its exposure by bringing multiple divested operations under one platform.

If completed, the SABIC acquisition would further change the ownership structure of Europe’s petrochemical industry and increase the role of specialist investors in operating and consolidating established production assets.

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