SABIC to buy DSM's polyolefins. (Your Business in Brief).

DSM of the Netherlands and SABIC of Saudi Arabia have agreed in principle for SABIC to purchase DSM's petrochemicals business, which includes polvethyene and polypropylene. The transaction involves the transfer of all shares of the companies that form DSM. Petrochemicals (DPC) and the related technology positions, patents, and trade names. DSM and SABIC expect the closing to take place around June 30 pending approval by the European Commission.

This acquisition will move SABIC from 22nd posittion to 11th position in the global petrochemical industry, and will establish SABIC as the third and fourth global player in the polyethylene and polypropylene businesses; respectively.

By selling its petrochemical business DSM advances its plan to become a specialty company focusing on biotechnological and chemical products for the life-science industry and on performance materials -- including engineering plastics.

DSM Petrochemical, which includes DSM Polyethylenes and DSM Polypropylenes sells about 5.72 billion lb/yr of polymers mainly in Europe. DSM produces LDPE, HDPE, hexene and octene LLDPE, UHMW-PE, modified-polyolefin adhesive polymers and metallocene plastomers (through a joint venture with ExxonMobil). SABIC already produces LDPE LLDPE, HDPE, PP, and a number of other polymers.