Fair trade regulator CCI has today approved the deal of chemical companies Lanxess and Saudi Aramco, which is to form a joint venture for synthetic rubber worth 2.75 Billion euro. This deal means that both companies Lanxess and Armco Overseas Company (the subsidiary of Saudi Aramco) will hold 50 per cent of interest in joint venture.
The Competition Commission of India (CCI) has informed about the deal via tweet, which reads, “CCI approves formation of a 50:50 joint venture for synthetic rubber between Lanxess and AOC,” According to the deal, Saudi Aramco will have to pay 1.2 Billion euro for its 50 per cent share after deducting debt and other financial liabilities.
Lanxess said, “Lanxess will contribute its synthetic rubber business to the new joint venture. This will include the Tire and Specialty Rubbers (TSR) and the High Performance Elastomers (HPE) business units, their 20 production facilities in nine countries and some 3,700 employees and additional support staff,”
Saudi Aramco will offer competitive and reliable access to strategic raw materials to the joint ventures over medium term. This new venture will be handled by Netherlands based holding company. Lanxess will appoint the CEO of the new Holding, whereas Aramco Overseas Company will appoint CFO for the new entity.