Saudi Basic Industries Corporation (SABIC) announces the latest developments related to the signing of an agreement with Mutares SE & Co KGaA to acquire all of SABIC’s Engineering Thermoplastics (ETP) business in the Americas and Europe.

Element List	Explanation
Previous Announcement	Saudi Basic Industries Corporation (SABIC) announces signing an agreement with Mutares SE & Co KGaA to acquire all of SABIC’s Engineering Thermoplastics (ETP) business in the Americas and Europe
Date of Previous Announcement on Saudi Exchange’s Website	2026-01-08 Corresponding to 1447-07-19
Hyperlink to the Previous Announcement on the Saudi Exchange Website	Click Here
Latest Developments Of The Announced Event	SABIC announces the successful closing of the divestiture of SABIC’s Engineering Thermoplastics (ETP) business in the Americas and Europe on August 3, 2026, following the fulfilment of all conditions precedent, including the receipt of mandatory regulatory approvals and the execution of all required carve-out activities.
The costs associated with the event, and if they have changed or not with indication of the reasons.	There is no material change to the transaction costs previously disclosed.
Additional Information	Closing the transaction to divest the Engineering Thermoplastics (ETP) business in the Americas and Europe represents a significant step in SABIC’s portfolio optimization, including the exit from structurally underperforming assets, significantly reducing cash losses, enhancing return on capital employed (ROCE), and ultimately maximizing long-term shareholder value. The disposed business reported a loss from operations of approximately SAR 1.9 billion for the year ended 31 December 2025 and approximately SAR 648 million for the six-month period ended 30 June 2026. Carving out the Engineering Thermoplastics (ETP) business in the Americas and Europe has improved SABIC’s EBITDA margin by approximately 130 to 140 bps on proforma basis. The financial impact of the transaction, including the initial gain or loss on disposal, has been reflected in SABIC’s consolidated financial statements in accordance with applicable accounting standards. The recognized gain or loss on disposal remains provisional and is subject to customary fair value adjustments during the applicable measurement period. The parties will continue to complete the customary post-closing settlement and purchase price adjustment procedures in accordance with the Sale and Purchase Agreement.