CANNES – Saudi Basic Industries’ (SABIC) venture capital arm is looking at acquisitions of up to $100 million for the new business, its chief executive said Thursday, and has already made a few purchases in Europe and the United States.
Mohammed Al-Mady also said the petrochemicals giant, one of the world’s largest chemicals firms by market value, expected to see moderate growth in 2012 on the heels of record quarterly results so far this year.
“The good news is that we are still in growth and not in recession. Yes, it’s moderate growth, but it’s still growth,” Al-Mady told Reuters on the sidelines of the Group of 20 meeting in Cannes, southern France. “Our fertiliser business is doing well and chemical/plastics follows the GDP of the world so if there is a slowdown it will follow suit. – Reuters
“(Next year) is probably going to follow on the heels of 2011. It will be another good year. It may slowdown a little bit.”
Asked whether Netherlands-based SABIC Ventures was looking at investments in the range of $5 million to $100 million, Al-Mady said: “It is in that range. We are looking at companies in the incubation stage. We have already made a few acquisitions in Europe and the US.”
SABIC has announced earlier the launch of a new global corporate venture capital arm, Sabic Ventures, in the Netherlands, with the primary goal of seeking out innovative technologies and businesses consistent with the company’s global strategy.
SABIC Ventures aims to build up a portfolio of technology options for the company’s future businesses. It will do this by investing directly both in seed stage, early stage and late stage companies. The new organization will both lead investment, co-lead and invest alongside venture capitalists.
Al-Mady said that Sabic Ventures has been developed as an investment vehicle to accomplish profitable growth.
“SABIC aspires to be the preferred leader in chemicals. We will accomplish this through organic growth by investing in new assets and expanding current assets; mergers and acquisitions in targeted areas; and new business creation. Venturing provides growth opportunities for new businesses.” – Agencies