GE close to finalising sale of plastics unit
By Our Corporate Bureau | 18 May 2007
General Electric is reported to be close to selling its plastics unit put up for sale in January this year, to Saudi Basic Industries (SABIC), which is reported to have emerged as the top bidder at about $11 billion.
Some observers say that the $11 billion price exceeds estimates of the value of the business, valued at between $8 billion and $10 billion.
Saudi Basic Industries Corp of Riyadh, the world's largest chemical firm by market value, was widely acknowledged to be the successful bidder over Dutch petrochemical maker Basell, due to GE's long standing relations with the Saudi Kingdom.
Other bidders are said to have included the private equity firm Apollo Management and the Dutch petrochemical group Basell.
GE's plastics unit, which had a profit of $674 million in 2006, is a supplier of car parts, compact discs and construction materials.