Abstract
ONLY THREE MONTHS after first unveiling the deal, Saudi Basic Industries Corp. (SABIC) has completed its purchase of GE Plastics for $11.6 billion. The business, renamed SABIC Innovative Plastics, makes engineering polymers such as polycarbonate, acrylonitrile-butadiene-styrene, polyphenylene oxide, and polybutylene terephthalate. It earned $674 million last year on sales of $6.7 billion. The deal is a departure for SABIC, which traditionally focused on making commodity chemicals and fertilizers out of low-cost Saudi Arabian methane and ethane. In recent years, the company branched out geographically by acquiring European petrochemical businesses from DSM and Huntsman Corp. Today, SABIC is the 11th largest chemical company in the world, on the basis of 2006 chemical sales of $19.7 billion. It earned an operating profit of $8.4 billion during the same period, the chemical industry's largest. Brian T. Gladden, the new CEO of SABIC Innovative Plastics, says the plastics unit and SABIC will enjoy synergies. ...
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