Oman’s state-owned OQ SAOC is considering a sale of its Germany-based chemical business, Bloomberg reported, citing people familiar with the matter. According to the sources, OQ is in talks with advisers to discuss options for OQ Chemicals, previously known as Oxea. OQ Chemicals’ value could be around $3 billion in any sale, they added. However, one of them noted that no final decision had been taken, and there was a possibility of no sale. Both OQ and OQ Chemicals have yet to release any statement regarding the plan.
The move came as Oman sought to raise money and lower a swelling budget deficit due to the COVID-19 pandemic. The Sultanate has been exploring possibilities to sell its stake in OQ or one of its subsidiaries, the sources said. OQ emerged as a result of mergers between Oman Oil Co. and several other state-owned enterprises, including Oman Gas Co, Orpic, and Oxea.
Oman acquired Oxea in 2013 from equity firm Advent International for €1.8 billion ($2.1 billion). OQ Chemicals employs over 1,400 workers in Germany, China, the US, and the Netherlands. It produces chemicals used to make coatings, cosmetics, pharmaceuticals, flavourings, and other products.
