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Sabic is interested in Bayer’s plastics business

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HB FRANKFURT. The Saudi chemical giant Sabic has signaled interest in the plastics business of Bayer. "When Bayer received more, we would certainly look at that," said Sabic CEO Mohamed Al-Mady of "time". For antitrust reasons, the Saudi Basic Industries Corp. (Sabic) would be only the polyurethanes sector in question. The Plastics Division of Material Science is one in three subgroups Bayer. The share was slightly at noon with 0.13 percent in positive territory.

Bayer declined to comment on the comments. Recently, the new Bayer CEO Marijn Dekkers had said that the group wants to maintain the group’s three pillars of health, pesticides and plastics. "This is of course no guarantee of existence for eternity. But a fundamental change for me is not on the agenda," he said.

The plastics material science came in 2009 a turnover of 7.52 billion euros. Even with polyurethane plastics division to put the € 3.78 billion.

Established in 1976, SABIC is the largest listed company in the Gulf. The petrochemical and plastics company is also the chemical company with the world’s highest market value. The Riyadh-based company that also produces fertilizers and metals, to 70 percent in Saudi Arabia’s state-owned. Last year the company had the equivalent of 20 billion €. On the stock market, there had been speculation in recent years, the group could be interested in BASF.

According to experts, German chemical companies for Arab investors several advantages: they provide the company with access to Western markets, offer research and development expertise and come up with established products and brands. With greater access to customers in the western Arabian companies would then be able to bring their raw material advantages and established industry players even more to compete.

Sabic has for some years, his former statement as a mere supplier of raw materials to break and take in the Western markets. An important step in this direction in 2007 was around twelve billion dollar acquisition of the plastics division, GE Plastics from U.S. conglomerate General Electric.

Sabic had built up its European operations in 2002 with the acquisition of the petrochemical business of Dutch chemical group DSM. It was the first major acquisition of the Group outside the Middle East. 2006 Sabic was then significantly expanded its European operations with the acquisition of European base chemicals and polymers activities of the U.S. company Huntsman.