The Saudi Basic Industries Corporation (SABIC) has agreed to acquire the plastics division of General Electric Co. for $11.6 billion. The deal is subject to regulatory approvals, and is expected to be completed by 3Q 2007.
SABIC CEO and Vice Chairman Mohamed Al-Mady and GE CEO Jeff Immelt announced the deal in a press release today.
“As a global operating company, SABIC has a long-term, strategic interest in the people, communities, customers, products, plants and technology of GE Plastics,” Al-Mady said in the press release. “This acquisition represents another important step in SABIC’s growth and diversification to become one of the world’s leading manufacturing companies.”
SABIC previously acquired DSM Petrochemicals in Europe and Huntsman Petrochemicals in Britain. In both of those cases, existing management teams continued to manage the business and were given SABIC support in implementing investment and growth initiatives.
Based in Houston, SABIC Americas has operated in the US for more than 20 years. The company currently has more than 200 employees in the US through its own operations and a joint venture in New Jersey, plus another 500 who are employed indirectly through suppliers. With the acquisition, SABIC will employ some 30,000 people in the US.