Sabic Euro-Petrochemcials is the newest star on the international market following the company's recent takeover of DSM's petrochemicals business.

The takeover can be considered as one of Sabic's most important moves, guaranteeing it high slots in market segments and enhanced world prestige.

Sabic, already the Middle East's largest petrochemicals producer is now the 11th biggest player in the field following the purchase of the Netherlands-based DSM's petrochemicals unit, in a transaction worth more than $2 billion.

The new company is now called Sabic EuroPetrochemicals.

The transaction involved the transfer of all shares of the companies that together form DSM Petrochemicals (DPC), the associated DPC participations and sales activities, and the related technology positions, patents and trade names. The transaction took was completed last June, and took effect with retroactive effect from January this year. The total value of the transaction was 2.250 billion euros ($2.24 billion).

In 2001, DSM Petrochemicals generated sales of 2.4 billion euros. It annually sells about 2.6 million tonnes of polymers, mainly in Europe.

Sabic earned a net profit of $475.2 million in 2001. Sales exceeded $7.71 billion, an increase of 9 percent on 2000 with 27.4 million tonnes of product marketed, a rise of 28 percent on the year..

"Through this acquisition, Sabic is taking a major step forward in the implementation of its strategy, which is aimed at becoming a leading global player in petrochemicals," a Sabic statement said. "This acquisition will move Sabic from 22nd position to 11th position in the global petrochemical industry, and will establish it as the third and fourth global player in the polyethylene and polypropylene businesses respectively."

Mohamed Al Mady, Sabic vice-chairman and managing director, remarked: "This is an exciting proposition for our company. The acquisition of DSM's successful petrochemical business makes sound strategic and economic sense. It will provide us with a strong entry position in the European market and a springboard for its ambition to become a sector leader worldwide.

"The intended acquisition brings together experienced management teams, successful R&D divisions and a group of skilled people unrivalled in the industry. This will be good news for our customers and suppliers, and provides security and growth opportunities for petrochemical manufacturing in Europe."

Peter Elverding, chairman of DSM's managing board of directors, said: "This transaction fits in very well with our Vision 2005 strategy. Sabic is a very strong and highly committed player in the petrochemicals business. Over the years, DSM Petrochemicals has made an excellent contribution to DSM's performance and I am convinced that this transaction will secure its future. DSM will now concentrate on further implementing Vision 2005: Focus and Value."

The sale of DSM's petrochemical activities to Sabic specifically involved DSM Hydrocarbons BV, DSM Polyethylenes BV, DSM Polypropylenes BV (all in the Netherlands), DSM Polyolefine GmbH (DPO, Germany), and DSM Hydrocarbons Americas Inc and DSM Polypropylenes North America Incorporated in the US.

These businesses were merged in January this year to form the business group DSM Petrochemicals (DPC). In addition, the sale included DSM's interests in DSM Transport Maatschappij (DTM Pipelines), the integrated pipeline grid in Northwestern Europe (ARG and PALL) and various DPC participations in China and Malaysia.

The sale further included all related technology positions and the activities of the Stamicarbon licensing department for DPC and dedicated activities of DSM's support departments, such as the petrochemicals-related activities of DSM Research and DSM dedicated sales activities of DPC in Belgium, Denmark, France, Spain, Italy, Germany, the UK and Turkey, as well as DSM Sales International and the shared services.

DSM is active worldwide in life science products, performance materials and industrial chemicals.

The group has annual sales of 8 billion euros and employs about 22,000 people.