In what may be one of the biggest deals in the global chemical industry, Saudi Aramco will be purchasing a 70 percent stake in Saudi Basic Industries Corp. (Sabic). The deal is said to be financed by the Public Investment Fund of Saudi Arabia and will give Aramco the controlling share.
Aramco stated that it has no plans to buy the remaining shares of the company, which is Saudi Arabia’s largest publicly listed company. Yasir al-Rumayyan, PIF managing director, said in a statement. “This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities. It will unlock significant capital for PIF’s continued long-term investment strategy, underpinning sectoral and revenue diversification for Saudi Arabia.” Abdulaziz Al-Judaimi, senior vice president, downstream, for Saudi Aramco, said, “Sabic is a good strategic fit and a solid platform to support our continued investment for future growth in petrochemicals. [Aramco] is pursuing partnerships and acquisitions to we create long-term value and develop ground-breaking crude-oil-to-chemicals technologies.”
Image Courtesy of Saudi Aramco
