All relevant antitrust authorities have cleared the transaction. Hence, the joint venture will be launched as Arlanxeo on April 1, 2016.
"Arlanxeo will be a strong company of two strong partners. This is also reflected in the new name of the company," said Matthias Zachert, Chairman of the Board of Management of Lanxess AG and future Chairman of the Shareholders' Committee of Arlanxeo. "We will establish Arlanxeo as a new and independent player in the global market for synthetic rubber. And we are convinced that, in the world of rubber, Arlanxeo will become a strong brand."
"Under its new name, Arlanxeo will build on the customer focus, recognition and reputation of both Saudi Aramco and Lanxess, which both partners are very proud of," said Abdulrahman Al-Wuhaib, Senior Vice President Downstream, Saudi Aramco.
On September 22, 2015, Lanxess and Saudi Aramco signed an agreement to create a 50:50 joint venture for the development, production, marketing, sale and distribution of synthetic rubber used in the global tire industry, auto-parts manufacturing and a wide range of other applications.
Arlanxeo will be headquartered in the Netherlands. The partners will soon appoint the management team that will run the joint venture. Each partner will have equal representation on the boards overseeing the company. The CEO will be appointed by Lanxess and the CFO by Saudi Aramco.
"With this joint venture of the world's largest producer of synthetic rubber and the world's largest integrated energy company, we have laid the foundations for the sustainable and positive development of Arlanxeo," said Zachert. "This is a win-win for our customers as well as for the employees of Lanxess.We are looking forward to the launch of this promising new partnership."
Lanxess is a leading specialty chemicals company with sales of EUR 8.0 billion in 2014 and about 16,300 employees in 29 countries. The company is currently represented at 52 production sites worldwide.