Aramco has announced the successful acquisition of 70% stake in chemical manufacturer, Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia.
The transaction happened for a total purchase price of SAR 259.125 billion (US$ 69.1 billion), equating to SAR 123.39 price per share, the Oil producer announced on Wednesday.
The acquisition of the SABIC stake is consistent with Aramco’s long-term downstream strategy to grow its integrated refining and petrochemicals capacity and create value from integration across the hydrocarbon chain.
SABIC too expects to benefit from Aramco’s Downstream chemicals feedstock production, and ability to invest in and execute major growth projects at a very large scale.
Yasir Othman Al-Rumayyan, Governor, Public Investment Fund (PIF) said: “This is a significant milestone for three of Saudi Arabia’s most important entities. It provides capital for PIF’s long-term investment strategy as it drives the economic transformation and growth of Saudi Arabia, further benefitting the people of our country; it supports Aramco’s continued growth in Downstream and enhances its international footprint; and, it provides SABIC a new strategic energy industry focused shareholder with the ability to support growth projects.”
Amin Nasser, President & CEO, Aramco said: “We are excited to complete this transaction. It is a significant leap forward which accelerates Aramco’s Downstream strategy and transforms our company into one of the major global petrochemicals players. The strategic integration of our Upstream production and Downstream chemicals feedstock production with SABIC’s chemicals platform is expected to create opportunities for selective integration synergies that support growth and add value
for shareholders.”
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