Saudi Aramco in talk to acquire stake in SABIC

Saudi Aramco – the world’s largest oil company had invited banks for an advisory role and to raise money for the potential acquisition of a strategic stake in Saudi Basic Industries Corp (SABIC), according to a Reuters report. 

Saudi Aramco reportedly entered a discussion with SABIC’s largest shareholder - Public Investment Fund (PIF) to purchase a stake in the company via a private transaction. PIF owns 70 per cent of SABIC. However, the talks were regarded as in ‘seeding’ stage and there is a possibility that no agreement could be reached.

Saudi Aramco has been foreseeing growth in petrochemical business would be the main driver for oil demand in the longer term, and therefore, working to expand its footprint globally in this downstream sector to lessen the risk of high dependency on oil.