SABIC to bid US$12bn for GE plastics division

Main man: CEO Jeffrey Immelt will welcome bidders for GE’s plastics division.

Saudi Basic Industries Corp. (SABIC), the leading global chemical company in market value terms, is looking into a bid worth US$12bn for the plastics division of General Electric (GE).

A local news services provider said that SABIC had appointed Citigroup to arrange the offer in preparation for the first round of business in April. It was also reported earlier in January that GE considered selling off slow growth business such as its plastics unit as a step to concentrate on areas of higher growth such as energy, healthcare, and technology.

GE's plastics division's profits have been going downhill in the past two years due to inflation in natural gas as well as raw substances like benzene. Profits dropped from US$867m in 2005 to US$674m in 2006.

Print | Email | Discuss this article |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM