Arlaxeo Canada Inc., a subsidiary of Saudi Aramco, and Diamond Petrochemicals Canada Corporation (DPCC), a subsidiary of Mitsubishi Corp. announced the execution of an agreement between the companies, where Arlaxeo will sell its olefins business to Mitsubishi.
Arlaxeo ‘s olefins business produces butadiene and raffinate, and is located at the Bio-Industrial Park Sarnia in Ontario, Canada. Mitsubishi expects to continue operations in Sarnia, with existing olefins employees transferring from Arlaxeo to Mitsubishi. While the olefins business no longer fits in with Arlaxeo’s strategic focus, Arlaxeo and Mitsubishi are 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.