Aramco has brought in an adviser to identify potential buyers for Arlanxeo, people with knowledge of the matter said. They added that possible suitors could include chemical producers and private equity firms. Discussions are still unfolding, and a sale is not guaranteed. The people asked not to be named discussing confidential talks, and a company representative declined to comment.
Chemicals is a rough patch right now - demand is softer, there is too much capacity, and production costs are elevated. That has prompted big energy firms to rethink their exposure. Shell Plc has put certain US chemical assets up for sale, and Bloomberg News has reported that Dow Inc. may divest its interest in a chemicals venture with Aramco.
Aramco is stepping up a multibillion-dollar divestment program, targeting as much as $35 billion of deals to help bankroll Saudi Arabia's broader economic transformation and support dividend payouts. Alongside a potential Arlanxeo sale, the company has looked at selling part of its large property holdings and an ownership slice of its oil export and storage terminals. Aramco has been leaning on sale and leaseback structures and minority-stake transactions to raise cash from infrastructure while keeping operational control.
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If Aramco goes ahead, selling Arlanxeo would be a plain-vanilla corporate divestment compared with its recent monetization moves, suggesting the company may be prepared to shed entire businesses that no longer fit its strategy. For anyone tracking energy and chemicals, it is a window into how Aramco is prioritizing cash as the sector wrestles with weaker demand, surplus capacity and higher costs.
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