In its commitment to expand globally, Saudi Basic (Sabic) plans to bid for General Electric's plastics division in a deal that could be valued at up to US$12 bln (€9 bln). Citigroup has been appointed by Sabic to prepare an indicative offer ahead of the first round of the auction in mid-April. Sabic is 70% owned by the Saudi government and is one of the world's 10 largest petrochemicals manufacturers, with a market capitalisation of over US$100 bln. GE, the world's second-biggest company by market capitalisation, said in January 2007, that it would explore the sale of its plastics arm. Goldman Sachs has been mandated to manage the sale process. In an unusual move, GE imposed restrictions on which private equity groups could team up, to increase its control over the auction and create competitive tension between bidders.
Among those bidding are:
Blackstone, the US private equity firm, which has teamed up with privately owned Koch Industries.
Buy-out firm Apollo, which last year acquired GE's US$3.8 bln advanced materials business.
Kohlberg Kravis Roberts, Carlyle Group and Bain Capital are thought to be planning first-round offers.
Strategic players that have signalled an interest include Reliance Industries, India's largest listed group, and Basell- owned by Access Industries of the US and India's Chatterjee Group.
Sabic paid US$700 mln in cash in 2006 to acquire the UK-based European Base Chemicals and Polymers business of Huntsman Corporation, headquartered in the US
26-Mar-07 
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