Is AEQUITA placing a risky bet on a European chemicals renaissance?

Hot on the heels of its major purchase of European chemical production capacity from LyondellBasell, private equity firm AEQUITA has agreed to buy SABIC’s European Petrochemicals business. On the face of it, AEQUITA’s acquisitions are a vote of confidence in the future of Europe’s struggling petrochemical sector, but do they make sound financial sense?  

Our expert EMEA chemicals analysts have created an in-depth insight into the implications of the deal and the outlook for the sector in Europe. Complete the form at the top of the page to download a redacted version of the full report available to our Oils & Chemicals subscribers, or read on for a brief overview.  

What is AEQUITA acquiring? 

AEQUITA, a Munich-based private equity firm specialising in group carveouts and company succession, has agreed to acquire over 6 million tonnes of European olefins and polyolefins capacity across two deals.  

The company entered exclusive discussions with LyondellBasell in June 2025 as a potential newcomer to the chemicals sector. It confirmed the signing of a sales and purchase agreement for 2.9 million tonnes of the American multinational’s European chemical capacity in its Q3 2025 earnings call, with the deal expected to conclude in H1 2026. 

Then, in January AEQUITA announced a further deal to purchase the European Petrochemicals arm of SABIC, a chemical manufacturer majority owned by Saudi Aramco. The acquisition puts an enterprise value of US$500 million on the business, which includes 2.3 million tonnes of polyolefins capacity along with 1.1 million tonnes of olefins capacity. That deal is due to close in Q4 2026. 

Why the second European chemicals acquisition? 

According to AEQUITA, the SABIC transaction is a strategic move, adding complementary capacity to build what it calls “a scaled, competitive platform positioned for long-term, sustainable value creation”. The company now emerges as a significant market player, with seven large, strategic sites spread across the UK, Germany, France, Spain and the Netherlands. 

Announcing the deal, Managing Partner and Chairman Dr Axel Geuer said: “The assets are highly synergistic with the olefins and polyolefins business we recently acquired from LYB; with complementary markets, infrastructure and operational capabilities, we see potential to realise synergies and drive operational improvements across both businesses.” 

How will these deals impact European chemicals markets? 

Together, the two acquisitions will make AEQUITA Europe’s largest polyolefins producer, boasting 4.6 million tonnes of capacity, as well as its fourth largest ethylene producer, with 1.6 million tonnes of capacity.  

Prior to these deals, we forecasted that 15% of European polyolefins capacity would shut between 2025 and 2030. We predict that the perception of an improved environment for asset sales and the hope of legislative support to improve market conditions will encourage producers to ‘hang on’ longer. As a result, operating rates will suffer further. 

Do these deals make sense? 

On the face of it, a second major European deal in the space of twelve months for a new entrant to the petrochemicals sector may seem like a risky move. Subdued demand, volatile energy markets and aggressive Chinese buildout of chemicals capacity has left the global chemicals market in a precarious state. European petrochemicals production is additionally challenged by higher energy costs and cheap imports into the region — and our Asset Benchmarking Tools pinpoint the lack of competitiveness of many of the plants in the two deals. 

Thanks to an unusual deal structure, however, AEQUITA faces virtually no financial risk from the SABIC transaction. The seller is financing the purchase through vendor notes, which only require repayment if the business achieves strong performance or is successfully resold — thereby transferring acquisition risks from buyer to seller. 

Don’t forget to fill out the form at the top of the page to access the report extract, which explores this topic in much greater detail and includes a range of charts and data.