Borealis AG agreed to buy a plastomers joint venture that generates annual revenue of about 180 million euros ($229 million) from Exxon Mobil Corp. and Royal DSM NV.
The agreement to buy DEXPlastomers, jointly owned by the two partners, is expected to close in the first quarter, Heerlen, the Netherlands-based DSM said in a statement. Valence Group helped manage the sale, while HSBC Holdings Plc advised the buyer.
The transaction highlights efforts by feedstock-rich petrochemical and plastics companies in the Middle East to expand globally. Borealis is 64 percent owned by International Petroleum Investment Co. of Abu Dhabi, with OMV AG of Austria holding the remainder.
For DSM, the sale marks the latest step by Chief Executive Officer Feike Sijbesma to distance the company from its commodity past. The Dutch maker is focusing on nutritional ingredients and high-technology materials, including baby-food supplements and lightweight plastics used in car airbags.