EU Approval for Sabic

29-Dec-06

The deal for Saudi Basic Industries Corporation (Sabic)-a Saudi petrochemical group to buy part of Teesside's chemical industry, was agreed between the two companies in September, has been approved by the European Commission. Sabic plans to acquire Huntsman's base chemicals business for 440 mln and plans to invest another 80 mln in the operation. It includes Huntsman's cracker plant, at Wilton, its North Tees aromatics business, a paraxylene plant which makes raw materials for polyester, and a half-built polyethylene plant - the world's largest- at Wilton The European Commission, Europe's regulatory body has given the approval, after ruling out that this acquisition would not significantly impede competition in the European economic arena.