GE may sell plastics biz to Sabic for $11bn

General Electric (GE) is in the final stages of selling its plastics unit for about $11 billion, according to reports in the online edition of the Wall Street Journal and New York Times.

Saudi Basic Industries Corporation (Sabic), based in Riyadh, the world's largest chemical firm by market value, is likely to win the bid over Dutch petrochemical maker Basell, the Journal said citing people familiar with the matter.

Mukesh Ambani-led Reliance Industries was also reportedly in the race to buy the unit.

GE had put the plastics business on the auction block in January. GE chairman and chief executive Jeff Immelt said last month that efforts to sell GE Plastics is on track, and the company expects a deal to close in the third quarter.

Analysts had said the plastics business could be worth around $8 billion to $10 billion.

In selling its plastics division, GE will be parting ways with one of its oldest businesses. Immelt has worked at the unit, the NY Times report said.

For 2006, the plastics division reported about $6.6 billion in revenue, virtually unchanged from the previous year. Profit fell to $674 million, down 22% from 2005.