BRUSSELS, 4 August 2007 — EU regulators yesterday approved the acquisition of GE Plastics of the United States by the Saudi group SABIC, saying the deal would not significantly impact competition in Europe.
The European Commission found that “the product portfolios of both companies are largely complementary, SABIC (Saudi Basic Industries Corporation) focusing on raw materials and commodity plastics, GE Plastics being rather specialized in more refined types of plastics, notably so-called ‘engineering plastics’.”
The deal, worth $11.6 billion (8.5 billion euros), is expected to be completed in the third quarter, US conglomerate General Electric (GE) said in May.
GE Plastics is a global supplier of plastic resins used in numerous industries, including the automotive, healthcare, building and construction, and telecommunications sectors.
The Saudi firm’s US business, SABIC Americas, is based in Houston, Texas, and already has notable operations in the United States, but the deal with GE will significantly enlarge its US footprint.
SABIC currently has a market capitalization of around $80 billion and is one of the world’s 10 biggest petrochemicals manufacturers.
The Saudi government owns 70 percent of SABIC, while the remaining 30 percent of the firm’s shares are controlled by private Middle East investors.
