Integrated energy and chemicals company Saudi Arabian Oil Co. proposed the acquisition of joint-venture partner LANXESS Aktiengesellschaft's 50% interest in Arlanxeo Deutschland Gmbh, the Netherlands-based specialty chemicals joint venture launched by the companies in 2016.

The purchase would give Saudi Aramco 100% ownership in Arlanxeo, a synthetic rubber and elastomer products company valued at €1.5 billion on an enterprise value basis, according to an Aug. 8 news release.

Under Saudi Aramco's 100% ownership, Arlanxeo would continue to serve the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber products, principally for the high-volume global tire and automotive industries. Arlanxeo would maintain its current base in Maastricht, Netherlands.

The proposed transaction has been approved by the boards of directors of Saudi Aramco and LANXESS. Subject to the receipt of all regulatory approvals and consultation with the competent employee representative bodies, the deal is expected to close Dec. 31.