Germany-based specialty chemicals company Lanxess has agreed to sell its remaining 50 percent stake in synthetic rubber company Arlanxeo to its joint venture partner oil company Saudi Aramco.
The total joint venture Arlanxeo is valued at 3 billion euros ($3.4 billion). Lanxess expects to receive approximately 1.4 billion euros ($1.6 billion) in cash after deducting debt and other financial liabilities for its 50 percent share.
Lanxess plans to use the proceeds to strengthen its financial basis, increase the resilience of its business, gain additional strategic flexibility for further growth and reduce net financial debt.
The parties expect to complete the envisaged transaction by the end of 2018.