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Element List	Explanation
Introduction	Saudi Basic Industries Corporation (SABIC) announces further optimization of its portfolio which includes the divestment of 100% of the shares in SABIC Europe B.V. (comprising its European Petrochemicals business and assets) to AEQUITA (an established operator in European industrial sector). This transaction represents a significant step in SABIC’s strategic initiative to prioritise high-growth markets, optimize cost structure, enhance return on capital employed (ROCE), improve future cashflows, and ultimately maximise long term shareholders’ value.
Transaction Details	The transaction involves the divestiture of 100% of SABIC’s ownership in SABIC Europe B.V., this includes prominent production facilities located in Teesside (United Kingdom), Geleen (Netherlands), Gelsenkirchen (Germany), and Genk (Belgium), along with all associated commercial activities and infrastructure to AEQUITA (Munich, Germany). The enterprise value is SAR 1,875 M. The consideration will be settled entirely via two perpetual vendor notes repayable based on future cashflows, resulting from synergies between the divested SABIC business and other European Olefins and Polyolefins assets of AEQUITA. Date of entering into the transaction is 7 January 2026 and the anticipated deal closing is Q4 2026 (subject to conditions precedent satisfaction).
Transaction Amount	The enterprise value is SAR 1,875 M. The consideration will be settled entirely via two perpetual vendor notes repayable based on future cashflows, resulting from synergies between the divested SABIC business and other European Olefins and Polyolefins assets of AEQUITA.
Transaction Conditions	• Completion of separation of SABIC Europe B.V. from the SABIC Group. • Regulatory approvals • Completion of Consultations process with applicable employee representatives body. • Waiver of change of control termination rights in certain material contracts with SABIC’s majority shareholder group. • Completion of certain agreed Capex projects.
Parties of the Transaction	Seller: SABIC International Holdings B.V., a 100% subsidiary of Saudi Basic Industries Corporation (SABIC) Buyer: AEQH38 GmBH, a company of AEQUITA SE & Co. KGaA (industrial holding company, specialized in European industrials & chemicals).
Date of Entering Into The Transaction	2026-01-07 Corresponding to 1447-07-18
Description of Activity of The Asset Subject of The Transaction	SABIC’s European Petrochemicals business operates world-scale facilities engaged in the production and marketing of ethylene, propylene, low- and high-density polyethylene (LDPE, HDPE), polypropylene (PP), and value-added polymer compounds. Key sites include Teesside (UK), Geleen (NL), Gelsenkirchen (DE), and Genk (BE). The business supplies diverse industrial and consumer end markets across Europe.
Asset Book Value	SAR 12,494 M (as of 30 Sep 25, standalone in the defined perimeter).
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction	Refer to the attached document
Transaction reasons	• Strategic portfolio optimization and capital recycling towards growth markets and businesses. • Improve SABIC group ROCE by divesting low-return operations. • Enhancing profit margins and free cash flow.
Expected Impact of the Transaction on the Company and Its Operations	SABIC will deconsolidate all European petrochemicals assets/operations from its group financials at the time of closing the transaction. SABIC Europe B.V., will be treated as Discontinued Operations in accordance with IFRS 5 in SABIC’s consolidated financial statements for the full year 2025. The fair valuation of SABIC Europe B.V. is expected to result in a non-cash loss in a magnitude of SAR 10.8 billion to be recorded in SABIC’s fourth quarter earnings of 2025, based on the net assets to be transferred. This preliminary estimate will be subject to further substantiation for SABIC’s consolidated financial statements for the full year 2025.
Details of Using The Proceeds of the Asset Sale	Future proceeds and returns from the transaction will support SABIC’s growth strategy and ultimate value creation for SABIC’s shareholders.
Related Parties	None
Additional Information	Attached presentation on the deal summary and further information.
Attached Documents	Attached Documents Attached Documents

Saudi Basic Industries Corporation (SABIC) announces signing an agreement with AEQUITA SE &Co. KGaA (“AEQUITA”) to acquire all of SABIC’s shares in SABIC Europe B.V.