Huntsman sells to SABIC.(Saudi Basic Industries Corp.)(Brief article)

Urethanes Technology, October, 2006

LONDON -- Huntsman Corp. has agreed to sell its European base chemicals and polymers business to Saudi Arabian Basic Industries Corp. (SABIC) for $700 million in cash.

The sale will not, however, include Huntsman's pigments division nor the aniline and nitrobenzene operations of its polyurethanes division, both based in the UK.

As well as the cash, the Utah-based chemicals manufacturer also expects to reduce its UK pension liabilities by about $126 million, increasing the total value from the sale to about $826 million.

"This is a major step in divesting our commodity businesses as we execute our previously announced strategy of realigning our portfolio to differentiated businesses and paying down debt," said Peter Huntsman, president and ceo of Huntsman.