Talks have ended between Saudi Basic Industries Corporation (Sabic)and Italy's Eniover the sale of a majority stake in the Italian company's petrochemical business, Polimeri Europa, which has an annual turnover of $1,173 million. The failure of the deal, negotiations for which have been under way since last summer, comes just two weeks after Sabic's successful acquisition of the Netherlands' DSM Petrochemicals (MEED 5:4:02).
The companies cited recent problems at some plants owned by Polimeri as an important factor in the decision to terminate the negotiations. Due to changing environmental regulations, a number of plants could have faced closure, although they would have remained under Eni ownership. Industry sources say that no timetable had been set for the negotiations (see Special Report).