WAIT N’ WATCH

Riyadh, March 26 (Reuters): Saudi Basic Industries Corp (Sabic), the world’s largest chemical firm by market value, is considering a bid for the plastics unit of General Electric Co, a source familiar with the situation said on Monday.

“We are considering a bid for GE’s plastics unit,” the source, who asked not to be identified, said.

“It’s one of the many options on offer in the international market, which deserve to be examined,” the source added. Sabic had no official comment.

A deal for GE’s plastics unit could be worth up to $12 billion, the Financial Times reported on Monday.

Sabic, whose annual revenues exceed $23 billion, plans to nearly double its production to 100 million tonnes by 2015 by building plants in China, India and Saudi Arabia, and through the purchase of US and European firms.

Last year, Sabic agreed to buy the European bulk chemicals unit of the US-based Huntsman Corp for $700 million. GE said in January that it was considering the sale of its plastics division as it focuses on higher-margin growth businesses.

The auction, run by Goldman Sachs, is unique in that the bank is prohibiting the four main bidders — all private equity groups — from teaming up with each other.