Saudi Aramco, Saudi Arabia’s state-controlled Oil & Gas giant has reached a $69.1 billion deal to purchase a majority stake in petrochemicals firm Sabic from the kingdom’s sovereign wealth fund.
The deal will see Aramco buy the 70 percent stake in Sabic held in a share purchase agreement by the Public Investment Fund (PIF) of Saudi Arabia. The remaining 30 percent publicly traded shares in SABIC are not part of the transaction, and Saudi Aramco has no plans to acquire these remaining shares. The transaction is subject to certain closing conditions, including regulatory approvals.
The deal will expand the footprint of Aramco in refining and petrochemicals and inject cash into PIF, underpinning ambitious plans to reintegrate the economy of Saudi Arabia.
Amin Nasser, President & CEO, Saudi Aramco said: “This transaction is a major step in accelerating Saudi Aramco’s transformative downstream growth strategy of integrated refining and petrochemicals. SABIC is a world-class company with an outstanding workforce and chemicals capabilities. As part of the Saudi Aramco family of companies, together we will create a stronger, more robust business to enhance competitiveness and help meet rising demand for energy and chemicals products needed by our customers around the world.”
Headquartered in Riyadh, Saudi Arabia, SABIC has global operations in over 50 countries with 34,000 employees. In 2018, SABIC’s consolidated production volume across its various business units was 75 million metric tons, and recorded net income of USD $5.7 billion, annual sales of USD $45 billion, and total assets of USD $85 billion