Saudi Aramco buys 70% in Sabic for $69.1B


06/18/2020

Saudi Aramco closed a deal to buy a stake in the Saudi petrochemical company Sabic from the Saudi National Wealth Fund's Public Investment Fund (PIF), Aramco said. The company paid $ 69.1 billion (259.125 billion riyals) for 70% in Sabic.



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“Closing the deal expands Saudi Aramco’s presence in the global petrochemical industry, which is expected to show the fastest growing demand for oil in the coming years. Together, in 2019, Aramco and Sabic recorded petrochemicals production of nearly 90 million tons, including agricultural and special products,” the press release reads.

After closing the deal, Saudi Aramco will become one of the world's largest petrochemical players, according to the press release.

As part of Sabic's integration into Saudi Aramco, a corporate collaboration and integration committee has been set up to be led by Sabic's CEO. It will also include two representatives from the petrochemical company and three from Saudi Aramco.

Saudi Aramco announced the acquisition of a stake in Sabic from the Saudi sovereign wealth fund, PIF, in March 2019.

source: reuters.com