Arlanxeo Canada Inc., a subsidiary of the Saudi Arabian Oil Company, and Diamond Petrochemicals Canada Corp., a subsidiary of Japan’s Mitsubishi Corp., have agreed that Arlanxeo will sell its olefins business to Mitsubishi.
Located at the Bio-Industrial Park Sarnia in Ontario, Arlanxeo’s olefins business produces butadiene and raffinate.
Mitsubishi expects to continue operations in Sarnia, with existing olefins employees transferring from Arlanxeo to Mitsubishi. While the olefins business no longer fits in with Arlanxeo’s strategic focus, Arlanxeo and Mitsubishi are said to be confident that under Mitsubishi’s ownership, the business will develop and grow in the future.
The transaction is subject to customary closing conditions, including required regulatory approvals. Closing is expected in 1st half 2021.
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