State-led Saudi petchems giant Sabic this week announced that it has agreed to buy the 50% stake of Germany-based specialty chemicals firm Lanxess in their Arlanxeo synthetic rubber joint venture at a cost of €1.5bn ($1.74bn).

The Arlanxeo JV began operating on 1 April 2016, producing elastomers and engineering polymers with a combined capacity of more than 2mn t/y. Aramco paid Lanxess €1.2bn ($1.36bn) to take an equity share in a business unit operating 19 main manufacturing...