#Saudi's SABIC sells assets in Europe, Americas worth $950 million | Reuters

Saudi's SABIC sells assets in Europe, Americas worth $950 million | Reuters

Saudi Arabia's SABIC (2010.SE), opens new tab has agreed to sell its European petrochemical business and its Engineering Thermoplastics business in Europe and the Americas for a combined enterprise value of $950 million, as part of a restructuring during an industry slowdown.

Shares in the chemicals company fell as much as 4.8% at 48.2 riyals ($12.85) per share in early trade in Riyadh on Thursday, touching the lowest level in nearly 17 years. The stock has lost 26.4% in the last 12 months.

SABIC has agreed to divest its European petrochemical (EP) business, which includes manufacturing sites in the United Kingdom and Germany, to Munich-based investment firm AEQUITA for an enterprise value of $500 million.

It is also selling the ETP business in the Americas and Europe to German holding company Mutares (MUXG.DE), opens new tab at an enterprise value of $450 million. The business operates manufacturing sites in Canada, the United States, Brazil and Spain.

WIDER RESTRUCTURING

SABIC is, as the chemicals industry faces weak demand, divesting low-return operations and focusing on core chemical operations.

It is 70% owned by oil giant Aramco, which is cutting costs and selling assets as it capital expenditure with lower oil prices and shareholder payouts.

"These transactions represent a continuation of our portfolio optimisation program, which started in 2022 and included previous actions, such as the divestment of Functional Forms, Hadeed and Alba," CEO Abdulrahman Al-Fageeh said in a statement.

The company also said last year it was strategic options for its National Industrial Gases Company, including an initial public offering, as part of a broad review of its business.

The divestments announced on Thursday are expected to improve its overall core profit margins and free cash flow generation, the firm said, adding it "is committed to ensuring a seamless separation" and minimize disruption to ongoing operations.

Goldman Sachs advised SABIC on the EP transaction, while J.P. Morgan advised on the ETP deal. Lazard acted as independent financial advisor for both deals.

Gulf stocks end mixed ahead of US jobs data; Egypt extends gains | Reuters

Gulf stocks end mixed ahead of US jobs data; Egypt extends gains | Reuters

Gulf equities were mixed on Thursday, tracking firmer oil prices as investors awaited key U.S. labour data that could help shape expectations for the Federal Reserve's interest-rate path.

Oil prices, a key catalyst for Gulf markets, rose amid developments involving Venezuela and reports of progress on proposed U.S. sanctions legislation targeting countries doing business with Russia. Brent crude rose 1.4% to $60.78 a barrel by 1235 GMT.

Saudi Arabia's benchmark stock index (.TASI), opens new tab edged up 0.2%, supported by gains in energy, IT and financial shares. National Shipping Company (4030.SE), opens new tab jumped 10%, while Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender by assets, added 0.7%.

Saudi Basic Industries Corp (2010.SE), opens new tab recovered from a near-17-year low hit earlier in the session to trade 0.5% higher after SABIC said it agreed to sell its European petrochemical business and its Engineering Thermoplastics business in Europe and the Americas for a combined enterprise value of $950 million.

Dubai's benchmark stock index (.DFMGI), opens new tab extended its rally for a sixth straight session, hovering near its highest level since 2008 and closing up 0.1% as communication, industrials and utilities advanced. Air Arabia (AIRA.DU), opens new tab climbed 4.6% and Emirates Integrated Telecommunications (DU.DU), opens new tab gained 1.1%, while Emaar Properties (EMAR.DU), opens new tab fell 1% and toll operator Salik (SALIK.DU), opens new tab dropped 1.1%.

"The market held steady near a new 18-year high. The market could see further advances, backed by solid fundamentals and positive economic projections," said Joseph Dahrieh, managing director at Tickmill.

The Qatari benchmark index (.QSI), opens new tab fell 0.8%, with most stocks lower. Industries Qatar (IQCD.QA), opens new tab shed 0.8% and Qatar National Bank (QNBK.QA), opens new tab slid 1.3%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab snapped a two-session winning streak to end 0.1% lower. 

ADNOC Logistics (ADNOCLS.AD), opens new tab fell 1.2% and Abu Dhabi National Energy Company (TAQA.AD), opens new tab lost 1.9%, while Aldar Properties (ALDAR.AD), opens new tab rose 1% after IFR reported the developer raised $1 billion from a U.S. dollar hybrid bond that priced with a 5.875% coupon and drew $2.9 billion of final orders.

Investors are awaiting U.S. non-farm payrolls data due on Friday for further clues on the Fed's policy outlook. Gulf markets often track shifts in U.S. rate expectations because most regional currencies are pegged to the dollar.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.8%, lifted by a 5.3% gain in Telecom Egypt (ETEL.CA), opens new tab and a 1.3% rise in Commercial International Bank (COMI.CA), opens new tab.

Separately, Egypt's headline inflation is expected to have inched up to 12.5% in December from 12.3% in November, a Reuters poll showed on Wednesday.