Neste Oil is to sell its 10 Percent stake in Ibn Zahr to Saudi Basic Industries Corporation (SABIC) for USD 120 million. The deal for the Saudi European Petrochemical Company is expected to be concluded during Q2-2006, after which SABIC will own 80 percent of Ibn Zahr shares. Apicorp and Ecofuel SpA hold the balance shares in equal proportion. Neste Oil has been a shareholder in Ibn Zahr since its foundation in December 1984.
Ibn Zahr produces MTBE and polypropylene, and is located in Al Jubail on the eastern coast of Saudi Arabia. Despite the high profitability of Ibn Zahr, Neste Oil has arrived at this decision as recently Ibn Zahr's strategy has moved the company more and more towards petrochemicals, whereas Neste Oil's strategy is to concentrate on producing and marketing high-quality fuels for cleaner traffic.
27-Mar-06 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}